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.
Inflation moved sharply during 2025.
It hit 2.3% in April, climbed to 3% in September, and eased to 2.7% by year’s end.
The White House said its economic agenda continues to control inflation.
Investors now watch the data for interest rate signals.
The Federal Reserve paused cuts in January and will decide again in March.
Jerome Powell expects tariffs to cause only a temporary price increase.
The labor market stayed stable, but job growth slowed.
The economy added 181,000 jobs in 2025 after revisions, far below 2024 levels.
Trump highlights GDP growth and falling inflation as major successes.
Polls show rising voter dissatisfaction, especially on inflation.
These numbers create risks for Republicans before the midterm elections.
The administration has proposed new measures on housing, debt, and drug prices.
