The White House released a statement on December 18, 2025, celebrating a sharp drop in core inflation, which reached its lowest level in nearly five years. According to Press Secretary Karoline Leavitt, inflation has decreased by approximately 70% from its peak under President Joe Biden, and core inflation is now below the Federal Reserve’s 2% target.
“Core inflation is at a new multi-year low, with prices for groceries, medicine, gas, airfare, car rentals, and hotels continuing to fall,” Leavitt said. “Americans can expect this trend of lower prices and bigger paychecks to continue into the New Year.”
The latest data shows a dramatic turnaround in the economy, with wages rising for blue-collar workers, gas prices plummeting, and the deficit decreasing. Key economists, including Steve Moore and Ken Rogoff, have praised the report as an unexpected positive development for both Wall Street and Main Street.
This marks a stark contrast to the record-high 9% inflation seen under the Biden administration. Economic figures suggest that the Trump administration’s policies are contributing to sustained wage growth, particularly among construction and manufacturing workers. While economists initially underestimated the impact of tariffs, recent data shows no evidence that they have inflated prices.
Despite the positive outlook, critics of President Trump’s economic policies have yet to weigh in. The White House is hopeful that these gains will continue into 2026.
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