Inflation fell in January, reaching its lowest point in months and easing the burden American consumers have faced for the last few years, according to a key federal report released Friday.
The inflation rate was 2.4 percent this past month, according to the Bureau of Labor Statistics Consumer Price Index, which tracks how the prices of consumer goods and services change from month to month. The report beat expectations, which predicted inflation to hit 2.5 percent in January, according to CNBC. January’s rate was the lowest since May 2025, and is a far cry from the 9.1 percent inflation reached in June 2022 under President Joe Biden.
The economy’s core inflation, which doesn’t include volatile food and energy prices, was 2.5 percent, down from 2.6 percent in January.
“Today’s expectation-beating CPI report proves that President Trump has defeated Joe Biden’s inflation crisis,” the White House said in a press release. “With inflation now low and stable, America’s economy is set to turbocharge even further through long-overdue interest rate cuts from the Fed.”
The price of many important grocery items either dropped in price or saw modest increases in January, according to the report:
- Eggs: -7 percent
- Pork chops: -4.1 percent
- Beef and veal: -0.4 percent
- Bread: No change
- Rice: -0.1 percent
- Flour and prepared mixes: -0.8 percent
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Gas prices were down 3.2 percent, while electricity costs fell 0.1 percent and tax return prep and accounting fees fell 13.8 percent.
Several categories that saw price increases included cookies (+3.2 percent), bacon and related products (+4.3 percent) and fresh fish and seafood (+3.6 percent).
Over the past two months, President Donald Trump has consistently claimed that his administration has brought down prices for American consumers, though the inflation rate remained steady from November to December.
In fact, the president has said his administration has brought prices “way down” or has beaten inflation 20 times in five speeches on the economy since December, according to a report from Reuters.
Last month, the president claimed he had “done a great job on the word ‘affordability’” and reiterated price drops in an interview with Sean Hannity.
Friday’s inflation report is the second win for the Trump administration this week. A report released Tuesday revealed that the economy added 130,000 jobs in January, more than double what economists expected.
Cooling inflation and a healthy jobs report may increase Trump’s desire to see the Federal Reserve lower its interest rate. The president has pressured the Fed in the past to lower rates, a move that, in theory, would boost lending and borrowing and spur the economy.
However, a rate increase may not be on the table when the Fed meets in March. The Federal Reserve board may choose to take a wait-and-see approach to rate cuts as it watches how past decisions impact the economy, Beth M. Hammack, president of the Federal Reserve Bank of Cleveland, said Tuesday at the Ohio Bankers League 2026 Economic Summit.
“Rather than trying to fine tune the funds rate, I’d prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs,” Hammack said. “Based on my forecast, we could be on hold for quite some time.”
Tariffs have played a role in the Fed’s rate decisions over the past year, with chair Jerome Powell recently noting that the levies may have contributed to higher inflation. A recent report from the Congressional Budget Office, which provides nonpartisan, objective information about budget matters, noted that 70 percent of the cost of those tariffs would be passed on to consumers.