White House says US economy is 'roaring back to life' as inflation falls to 8‑month low

Donald Trump has been heavily criticised in the last few months over rising prices, which many believe have been brought forth by his aggressive tariff policies. However, a recent report on inflation shows that it has slowed recently to come down to an eight-month low. This will be a big win for the President, who has rarely shied away from tooting his own horn. Such figures are crucial ahead of this year’s Midterm elections in November.

The Bureau of Labour Statistics (BLS) revealed that consumer prices rose 0.2% in January, down from a 0.3% increase in December, as per a report in Newsweek. When it comes to the annual rate of inflation, it came down to 2.4% from 2.7%. This made it the lowest year‑over‑year reading since May 2025. The report states that experts had predicted the monthly inflation rate to hold at 0.3% and the annual rate at 2.5%.

Core inflation remained in line with what the experts predicted: rising to 0.3% from 0.2% every month and coming down to 2.5% from 2.6% annually. Core inflation excludes volatile food and energy categories. This is great news for the administration, which has already been celebrating the addition of 130,000 jobs in January. Experts predicted that there would be a modest increase of 70,000.

This gives the Trump administration enough proof to show that the economy is not slowing down due to his tariff policies. Some experts believe that there could be a time in the near future with low unemployment and lessening inflation. “Today’s inflation report comes on the heels of the jobs report released earlier this week that showed better-than-expected labor market conditions in January,” said Bright MLS Chief Economist Lisa Sturtevant.

“Just a month or two ago, there was talk of ‘stagflation’, or a combination of high inflation and high unemployment. Now, is it possible we’re going to have a ‘Goldilocks’ economy, where unemployment is low, and inflation is coming down?” she added. White House officials have heaped praise on the President’s policies after the report was made public.

“Today’s expectation-beating CPI report proves that President Trump has defeated Joe Biden’s inflation crisis. Overall inflation fell, and real wages grew by $1,400 in President Trump’s first year in office,” spokesman Kush Desai posted on X. “THIS is how you achieve AFFORDABILITY! The U.S. economy is roaring back to life, thanks to President Trump!” wrote White House press secretary Karoline Leavitt on X.

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