Inflation Eases to Near Five-Year Low as Trump Praises Latest Economic Report

President Donald Trump called Friday’s economic figures “very modest” and said the economy is “back on track.”He said inflation is improving.

A new federal data indicates January inflation dropped to 2.4% from a year earlier. This is one of the lowest yearly readings in nearly five years, down from 2.7% in December. The revised data takes inflation closer to the Federal Reserve’s 2% target, which the U.S. has not seen since early 2021.

Overall price increase is slowing, according to the consumer price index. Core inflation, which excludes food and energy costs to show trends, climbed 2.5% last year. It is slightly higher than the general rate but considerably below inflation peaks.

Energy index prices fell 0.1% year-over-year. Food prices rose 2.9% during the same period. Even as inflation slows, grocery costs worry many households.

Trump told reporters the report supported his economic policies. He said the country suffered “the worst” inflation but now has a reasonable level. The president said the latest results were expected and reflect cost-cutting initiatives.

Public perception on the economy is mixed despite improved inflation numbers. Polls show many Americans are still worried about the expense of living. Quinnipiac University found the president’s economic approval rating at 39%. Other polls show Americans are uncertain about the coming months.

Over the next six months, 62% of Gallup respondents anticipate inflation to rise and 50% expect unemployment to climb. Even as official data shows pricing pressures improving, these findings raise affordability and job stability worries.

The Federal Reserve regularly monitors inflation to ensure price stability and maximum employment. The January data implies improvement, but policymakers prefer prolonged drops before making long-term decisions.

The latest numbers boost Trump’s political prospects as economic conditions dominate national conversation. In the coming months, voters, policymakers, and business leaders will focus on inflation and affordability.

Even while Americans closely monitor grocery costs, petrol prices, and job prospects, the latest data shows price rise is decreasing.