WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 2.4% for the 12 months ending in January, below last month’s 2.7% reading and economists’ expectations. From December to January, the inflation rate declined to 0.2% from 0.3%.
January data confirm the annualized rate of inflation is below the year-earlier pace, showing that prices are right on track—trending downward. 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%.
Core inflation, which excludes volatile energy and food prices, also declined, increasing at a pace of 2.5% year over year in January after increasing by 2.6% in December.
Prices for everyday Americans continue to fall. Beef, eggs, and coffee prices all declined in January—clear signs of relief from President Trump’s pro-growth, anti-inflation agenda and sustained 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 healthcare price transparency reforms.
Carrie Sheffield, senior policy analyst for Independent Women’s Center for Economic Opportunity, issued the following statement:
“America continues to enjoy a reviving economy, including continued easing inflation, thanks to President Trump’s leadership to improve affordability for America’s families.
“Energy and gas prices continue to fall as President Trump pares back irrational ‘green energy’ mandates that cripple families in the midst of a severe winter.
“In President Trump’s first year back in office, economists estimate 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.
“President Trump and conservative members of Congress last year passed tax cuts and other reforms in the Working Families Tax Cuts. This law will continue to improve wage growth and ensure families keep more of their hard-earned money, seniors enjoy greater protection from Social Security taxes, and the U.S. tax code provides relief for buyers of American-made automobiles.
“We look forward to seeing these efforts bear fruit and continue to ease inflation for American families in the months ahead.”
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