Inflation in the U.S. increased 3% in January compared to the previous year, rising for the fourth straight month and presenting an economic challenge for the new administration in the White House.
The Consumer Price Index’s increase was higher than economists predicted, as grocery prices in January also ticked up 0.5% from the previous month and 1.9% year-over-year. The January CPI numbers mark the final report for former President Joe Biden’s time in office and the first days of the new Trump administration.
According to the U.S. Bureau of Labor Statistics (BLS) report released on Wednesday, “The index for meats, poultry, fish, and eggs rose 1.9 percent over the month, as the index for eggs increased 15.2 percent.” The massive increase in the cost of eggs is due to widespread bird flu, which resulted in a nationwide egg shortage. Along with raising prices, grocery stores across the U.S. have limited the number of egg cartons customers can purchase in one trip, and some restaurants are charging more for orders that include eggs.
The price jump for eggs was the largest increase since June 2015 and “accounted for about two thirds of the total monthly food at home increase,” according to the BLS. Foods other than eggs rose 0.3% in January. The energy index also rose 1.1% in January as gas prices jumped 1.8%.
Trump commented on the inflation report with a Truth Social post on Wednesday morning, simply writing, “BIDEN INFLATION UP!” Earlier in the morning, Trump said that interest rates “should be lowered,” adding that it would “go hand in hand with upcoming Tariffs!!!” The rise in inflation, however, will give the Federal Reserve a reason to keep interest rates where they currently stand.
In his first weeks back in office, Trump has focused much of his economic policy on tariffs and energy production. Earlier this week, the president imposed a 25% tariff on steel and aluminum imports, which the White House argues will help revitalize U.S. industry and boost production. However, some worry that the steel and aluminum tariffs will hurt American manufacturers and workers.
Inflation skyrocketed to more than 9% under President Biden before gradually falling to 2.4% in September 2024. Since September, inflation has slowly ticked back up each month. After Trump vowed on the campaign trail to “immediately” alleviate the stress on Americans’ wallets, the administration suggested that plan could take some time. Vice President JD Vance told CBS News last month, “Rome wasn’t built in a day,” adding that “it’s going to take a little bit of time” before Americans see their grocery bills go down.
“Donald Trump has already taken multiple executive actions that are going to lower energy prices, and I do believe that means consumers are going to see lower prices at the pump and at the grocery store, but it’s going to take a little bit of time,” Vance told CBS News host Margaret Brennan.
