New data from the Bureau of Labor Statistics shows consumer prices increased by 2.4% in January, below expectations, while average hourly earnings grew 3.7% over the past year. The Trump administration highlighted these trends as evidence of improving affordability under its policies. Private-sector job growth exceeded 170,000 in the month.
The Bureau of Labor Statistics released figures on Friday indicating that consumer prices rose 2.4% in January, falling short of the forecasted 2.5%. This slowdown in inflation came alongside a 3.7% rise in average hourly earnings over the previous year, which outpaced the inflation rate and pointed to real wage growth. Private-sector employers added more than 170,000 jobs during the month, contributing to positive market reactions.
Treasury Secretary Scott Bessent commented on the developments, stating, “We saw real wage growth in 2025. It could be very strong in 2026, and I think the American people are going to start feeling it.” The White House attributed the data to the success of President Donald Trump’s economic agenda. Spokesperson Taylor Rogers said, “President Trump has defeated Joe Biden’s inflation crisis in record time. 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.”
Deputy Press Secretary Kush Desai added, “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. This is just the beginning: President Trump’s MFN drug pricing deals, tax cuts, trade deals, and deregulation are just starting to take effect.”
For context, inflation stood at 1.9% annually when President Joe Biden assumed office in 2021. It averaged 4.9% during his term and reached a peak of 9.1% in 2022. Biden had enacted the $1.9 trillion American Rescue Plan that year, featuring $1,400 direct payments to Americans. Bessent criticized those policies, saying, “Joe Biden crashed the economy. The policies were a disaster for the American people.” He contended that the prior administration increased demand through spending while limiting supply via regulations, which fueled inflation.
These January figures represent continued easing of inflationary pressures amid the current administration’s focus on affordability.
