<p>New federal data released Friday showed inflation slowing and wages rising in January, trends the Trump administration says signal improving affordability.</p>
<p>The Bureau of Labor Statistics reported that consumer prices rose 2.4% last month, below the 2.5% forecast. Markets rose following the news.</p>
<p>Average hourly earnings rose <a href="https://www.bls.gov/news.release/pdf/empsit.pdf"><span style="font-weight: 400;">3.7%</span></a> over the past year, outpacing inflation and reflecting real wage growth. Private-sector employers added more than 170,000 jobs in January.</p>
<p><span style="font-weight: 400;">“We saw real wage growth in 2025,&#8221; Treasury Secretary Scott Bessent said. &#8220;It could be very strong in 2026, and I think the American people are going to start feeling it.”</span></p>
<p><span style="font-weight: 400;">The White House said the data reflect the success of President Donald Trump&#8217;s economic policies.</span></p>
<p><span style="font-weight: 400;">“President Trump has defeated Joe Biden’s inflation crisis in record time,&#8221; said White House Spokesperson Taylor Rogers. &#8220;Inflation is low, wages are up, and the American economy is booming — all thanks to President Trump’s pro-growth agenda. President Trump is working hard to Make America Affordable Again — just like he promised.” </span></p>
<p>&#8220;Real wages are up $1,400 in 2025 — nearly half of Biden era real wage decline made up for in just one year thanks to President Trump,&#8221; said White House Deputy Press Secretary Kush Desai. &#8220;This is just the beginning: President Trump&#8217;s MFN drug pricing deals, tax cuts, trade deals, and deregulation are just starting to take effect.&#8221;</p>
<p>When President Joe Biden took office in 2021, annual inflation was running at 1.9%. During his term, inflation averaged 4.9% and peaked at 9.1% in 2022. Biden signed the $1.9 trillion American Rescue Plan in 2021, which included $1,400 direct payments to Americans.</p>
<p><span style="font-weight: 400;">“Joe Biden crashed the economy,” Bessent said. “The policies were a disaster for the American people.” </span></p>
<p><span style="font-weight: 400;">Bessent argued that the Biden administration boosted demand through increased government spending while constraining supply with tighter regulations, driving up inflation. </span></p>
<p>The January data marks the latest sign that inflationary pressures may be easing as the administration pushes its affordability agenda.</p>

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Inflation Cools, Wages Rise As Trump White House Celebrates Affordability Gains