New federal data released Friday showed inflation slowing and wages rising in January, trends the Trump administration says signal improving affordability.
The Bureau of Labor Statistics reported that consumer prices rose 2.4% last month, below the 2.5% forecast. Markets rose following the news.
Average hourly earnings rose 3.7% over the past year, outpacing inflation and reflecting real wage growth. Private-sector employers added more than 170,000 jobs in January.
“We saw real wage growth in 2025,” Treasury Secretary Scott Bessent said. “It could be very strong in 2026, and I think the American people are going to start feeling it.”
The White House said the data reflect the success of President Donald Trump’s economic policies.
“President Trump has defeated Joe Biden’s inflation crisis in record time,” said White House Spokesperson Taylor Rogers. “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.”
“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,” said White House Deputy Press Secretary Kush Desai. “This is just the beginning: President Trump’s MFN drug pricing deals, tax cuts, trade deals, and deregulation are just starting to take effect.”
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.
“Joe Biden crashed the economy,” Bessent said. “The policies were a disaster for the American people.”
Bessent argued that the Biden administration boosted demand through increased government spending while constraining supply with tighter regulations, driving up inflation.
The January data marks the latest sign that inflationary pressures may be easing as the administration pushes its affordability agenda.

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