UPDATE: In a pivotal speech, former President Donald Trump announced significant progress in reducing inflation, declaring core inflation at its lowest levels in over five years. Speaking during the 2026 State of the Union, Trump emphasized the contrast between his administration’s policies and the inflation surge during the Biden administration.
Trump stated, “The Biden administration and its allies in Congress gave us the worst inflation in the history of our country, but in 12 months, my administration has driven core inflation down to the lowest level in more than five years.” He revealed that the annualized rate of core inflation, excluding food and energy, dropped to 1.7% in January 2025, a stark improvement from 3.4% at the end of 2024.
This announcement comes as inflation impacts the everyday lives of Americans. The former president’s claims highlight the sharp turnaround in economic conditions, attributed to his policies despite ongoing criticisms. Critics had warned that Trump’s measures, including tariffs and tax cuts, would exacerbate inflation. However, Trump asserted that these fears were unfounded, as data shows a significant decrease in inflation rates.
The current inflation situation matters immensely for families struggling with rising costs. A year-over-year analysis reveals that prices for core goods have increased by just 1.1%, significantly below historical averages. Moreover, wage growth has surged to 1.9%, the highest rate since March 2021, providing a glimmer of hope for workers facing economic challenges.
As the political landscape heats up ahead of the upcoming midterm elections, Trump’s framing of these economic statistics serves not just as a defense of his administration but a rallying call for his supporters. The implications of his speech are clear: Trump aims to reclaim the narrative on economic recovery, positioning himself as a leader who can effectively manage inflation.
Looking forward, all eyes will be on the economic data released in the coming months, as the public and analysts assess whether these trends continue. The focus now shifts to how Trump’s administration will sustain this momentum and address ongoing concerns about price stability.
Stay tuned for more updates as this economic story unfolds.
