The cost of living in the U.S. continues to climb, challenging President Trump’s promise to swiftly bring prices down. New economic data for January shows that inflation is still on the rise. The Consumer Price Index (CPI) increased by 3% year-over-year, up from December’s 2.9%. Monthly inflation also exceeded expectations, registering a 0.5% jump compared to the projected 0.3%.
Even core inflation, which excludes food and energy costs, ticked up from 3.2% in December to 3.3% in January, signaling persistent price pressures across various sectors. The news unsettled investors. It caused stock market indices like the S&P 500 and Dow Jones to dip by roughly 1%. Meanwhile, U.S. Treasury yields rose to 4.629%—a reflection of growing uncertainty about future economic policy.
Just a few years ago, global inflation surged due to supply chain disruptions caused by the pandemic, pushing U.S. price growth to a staggering 9.1%. While inflation has cooled since then, everyday expenses remain elevated, creating frustration among consumers who expected more immediate relief.
The latest inflation figures are fueling debates. People are discussing how soon the Federal Reserve might cut interest rates. This decision could impact both markets and household budgets. Trump has repeatedly called for rate cuts. He reiterated his stance just before the data was released. He urged the Fed to act. He advocated for steep tariffs on foreign imports. Many economists warn this strategy could backfire by driving prices even higher.
During his campaign, Trump confidently promised to slash inflation, telling voters, “Prices will come down, and they’ll come down fast.” However, since reclaiming the presidency, his messaging has shifted. In a December interview, he admitted that lowering prices is a difficult challenge. He said, “It’s hard to bring things down once they’re up.” When recently pressed about when Americans might see relief, Trump dodged the question. He chose to pivot to criticism of international trade policies instead.
With inflation still lingering, all eyes remain on Washington. People want to see if bold promises will translate into real economic relief. Otherwise, American consumers may be left waiting.
