Trump gets fresh economic boost as inflation falls to 8‑month low

The latest inflation reading from the Department of Labor has revealed that inflation—while still far from the flat levels touted by President Donald Trump—continues to slow toward its pre-pandemic rates.

On Friday morning, the Bureau of Labor Statistics reported that consumer prices rose 0.2 percent in January, down from a 0.3 percent increase in December. On an annual basis, inflation eased to 2.4 percent, from 2.7 percent the previous month, its lowest year‑over‑year reading since May 2025.

Prior to the release, analysts had forecast the monthly rate holding steady at 0.3 percent, with annual inflation dropping less significantly to 2.5 percent.

This follows the agency reporting on Wednesday that the U.S. economy added 130,000 jobs during the month, nearly double the amount forecast by analysts, and up from tallies of 48,000 in December and 41,000 in November.

Meanwhile, core inflation—which excludes the volatile food and energy categories—climbed to 0.3 percent from 0.2 percent on a monthly basis, as the annual rate fell to 2.5 percent from 2.6 percent, both in line with consensus expectations.

This is a developing story. More to come.