“Today’s expectation-beating CPI report proves that President Trump has defeated Joe Biden’s inflation crisis: overall inflation fell, and real wages grew by $1,400 in President Trump’s first year in office. Housing inflation notably continues to cool, while prescription drug prices actually fell in 2025 — with even more price relief ahead for American patients thanks to President Trump’s Most Favored Nation drug pricing deals and the Great Healthcare Plan. With inflation now low and stable, America’s economy is set to turbocharge even further through long-overdue interest rate cuts from the Fed.”
— White House Deputy Press Secretary Kush Desai
Here’s what you need to know:
President Trump’s America First agenda continues taming inflation — with no evidence of tariff-induced spikes.
- Year-over-year inflation fell to 2.4% in January — beating expectations yet again and marking the lowest level since May.
- Core inflation — the best measure of inflation — dropped to its lowest level in nearly five years, underscoring the sustained progress made in the Trump Economy.
Wages are growing faster than prices — putting more money in Americans’ pockets.
- Real average hourly earnings for all private-sector workers rose in January, up 1.2% over the past year; for middle- and lower-wage workers, gains were even stronger at 1.5%.
- In President Trump’s first year back in office, real earnings for all private-sector workers have outpaced inflation by nearly $1,400 — earning back some of the nearly $3,000 they lost under Biden.
- Mining workers: +$2,400
- Construction workers: +$2,100
- Manufacturing workers: +$1,700
- Goods producing workers: +1,700
President Trump is delivering real relief at the checkout, pharmacy, and gas pump.
- President Trump is keeping his promise to lower costs for everyday Americans, with key prices falling in January and over the past year.
- Beef, eggs, and coffee prices all declined in January — clear signs of relief from President Trump’s pro-growth, anti-inflation agenda and concerted effort to address prices in key areas.Energy prices dropped 1.5% and gasoline prices fell 3.2% last month.Used vehicle prices decreased 1.8% in January.
- Prescription drug prices held steady in January and are down over the past year — with even greater savings on the horizon from President Trump’s landmark drug pricing reforms and the Great Healthcare Plan.
This report is further proof that President Trump’s bold economic leadership is restoring affordability, boosting take-home pay, and positioning the U.S. economy for a new era of prosperity.