US inflation fell to 2.4% in January after last year’s tariff-driven price swings. Prices rose 0.2% from December, while core inflation increased 0.3%. Economists had expected a slightly higher annual rate of 2.5%. Inflation dropped to 2.3% in April, then climbed to 3% by September. It declined again to 2.7% by late autumn. The White House called the new figure proof that its economic agenda controls inflation. Officials argued that lower inflation will support future Federal Reserve rate cuts. Wall Street now studies the data for interest rate signals. The Federal Reserve paused cuts in January and will decide again in March. Jerome Powell said tariff effects still move through the economy but will fade after a temporary peak. The labor market remained stable in January, although overall job growth slowed in 2025. The economy added 181,000 jobs in 2025 after revisions, far fewer than in 2024. Trump highlighted GDP growth and price stability and praised his first year in office. Recent polls show falling voter approval, with inflation receiving his weakest ratings. These numbers worry Republicans before the midterm elections. The administration has proposed measures to reduce housing costs, credit card debt, and drug prices.
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