“President Trump made it clear to the American people last night: inflation is on the decline, wages are on the rise, and the nation is poised for an economic resurgence. Today’s report reveals inflation figures that are significantly lower than what analysts anticipated — a far cry from the staggering 9% inflation spike attributed to Joe Biden. Core inflation has reached a multi-year low, with prices for essentials like groceries, medications, gasoline, airfare, car rentals, and hotel stays steadily decreasing. Americans can look forward to this trend of lower prices and higher incomes continuing well into the New Year!”
— White House Press Secretary Karoline Leavitt
The latest inflation statistics have once again surprised economists, with core inflation — frequently deemed the most reliable indicator — hitting its lowest point in nearly five years. Inflation rates are down, gas prices have dipped, the deficit is shrinking, and wages are climbing — and as President Donald J. Trump emphasized to the nation yesterday, the best is yet to come.
Key takeaways:
- The inflationary period appears to be behind us. Recent data indicates that inflation has plummeted about 70% from its peak during the Biden administration. If the past two months’ trends continue, inflation could stabilize at a mere 1.2% — well below the Federal Reserve’s target of 2%.
- Prices are stabilizing. In the last couple of months, prices for groceries, dairy products, fruits, vegetables, toys, prescription medications, clothing, airfares, natural gas, car rentals, and hotel accommodations have all decreased, coinciding with average gas prices reaching multi-year lows. Additionally, rent inflation is at its lowest since October 2021, as the influx of illegal immigrants no longer inflates housing costs.
- Wages are rising. Private sector employees are expected to see their real wages increase by $1,300 during President Trump’s first full year in office, recovering the purchasing power lost under Biden’s policies. Notably, wage growth is most pronounced among blue-collar workers, with annualized real earnings soaring by $1,800 for construction laborers and $1,600 for those in manufacturing.
- The so-called “experts” remain oblivious to the Trump Economy’s potential. Every single economist surveyed by Bloomberg and Dow Jones missed the mark in their forecasts, as tariffs have shown no significant impact on inflation.
Here’s what the experts are saying:
- CNBC’s Steve Liesman: “That is a very good number.”
- CNN’s Matt Egan: “Clearly, this is another step in the right direction.”
- Harvard Economics and Public Policy Professor Ken Rogoff: “A better number than anyone was expecting… Positive news. There’s no other way to spin it.”
- Economist Steve Moore: “Amazing… This is good news for Wall Street; it’s good news for Main Street… I got a big smile on my face right before Christmas with this number.”
- Strategic Wealth Partners CEO Mark Tepper: “Incredible. I thought tariffs were supposed to be inflationary, yet inflation is decreasing. The affordability gap is closing every day under President Trump’s leadership. We’re witnessing real wage growth and declining inflation — this is fantastic for America.”
- The Washington Examiner’s Tiana Lowe Doescher: “It’s remarkable to observe that core inflation figure… the lowest since Biden ignited this economic turmoil… That’s what we call a comeback. Kudos to Donald Trump!”
- Bloomberg’s Chris Anstey: “The lowest estimate in Bloomberg’s survey of 62 economists was 2.8% for the core year-on-year increase. (That came from Citigroup.) The actual reading was two-tenths lower. Remarkable.”
- The Washington Post’s Andrew Ackerman: “Inflation cooled unexpectedly in November, easing pressure on household budgets and offering the White House a much-needed respite.”
President Trump entered office with a pledge to tackle the inflation and cost-of-living crisis he inherited — and he has undeniably made significant strides, paving the way for what could be a remarkable year ahead.
