January 1, Inflation Falls to Pre-Biden Lows in 2025

Wyatt’s Take

• Annual inflation drops to levels not seen since Trump’s presidency.
• Prices for shelter, food, and energy continue to rise month-to-month.
• Political leaders clash over the real state of the economy.

Inflation in 2025 landed at 2.7 percent, the lowest it’s been since 2020. Back then, this rate reflected what folks saw before Biden took office.

The Bureau of Labor Statistics confirmed inflation rose most due to shelter costs jumping 0.4 percent in December. Food prices climbed 0.7 percent and energy was up 0.3 percent last month.

While inflation remains, it’s slowed down from the earlier crisis under President Biden. Rates once hit 7.0 percent but have finally started dropping in recent years.

“The final CPI for the year did show some progress occurred: The overall and core inflation rates of 2.7% were cooler than January’s 3% and 3.3% rates, respectively, BLS data shows.”

President Trump celebrated these numbers, saying: “JUST OUT: Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!!…ALSO OUT, GREAT GROWTH NUMBERS. Thank You MISTER TARIFF!”

Some Democrats aren’t agreeing with the positive spin. Representative Hakeem Jeffries argued, “Inflation is up … and the Republican economy is a complete disaster.” Yet, these latest results tell a different story from the Biden era’s economic pain.

Want the facts without the noise? Keep following for commonsense news grounded in real numbers.

Wyatt Matters

Stable prices mean a lot when families are trying to stretch every paycheck. A drop in inflation helps folks in the heartland feel some relief, especially after years of economic strain.

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