By Staff Reporter |
The Republican faction of Congress’ Joint Economic Committee (JEC) reported inflation as “hold[ing] steady” in its monthly update released last week.
JEC Republicans reported in a press release accompanying the update that the Consumer Price Index (CPI) “remained relatively steady” at just under 2.7 percent year over year in December.
The coalition stated that November’s end CPI (2.74 percent) represented “the biggest [inflation] drop” since March 2025.
Food and energy prices went up by half a percent to almost three percent from 2024 to 2025, respectively; the latter by far outpacing the former.
Food price inflation hit 3.07 percent, up .56 percent year over year. Energy price inflation hit 2.30 percent, up by 2.82 percent year over year.
These price increases were felt differently based on region. Those in the Northeast were hit hardest by inflation (3.3 percent), then the West (2.9 percent), and then the Midwest (2.7 percent). The South felt it the least of all the regions, with inflation hitting 2.2 percent.
Income year over year overall saw increases: an increase in 1.07 percent for all employees and a .57 percent increase in weekly earnings. There was a “virtually unchanged” decline in hourly earnings of .01 percent.
President Donald Trump broke down this latest report as part of his address on the state of the economy in Detroit last Tuesday.
Trump said the U.S. has experienced “the greatest year in history” in terms of its finances.
“Under our administration, growth is exploding, productivity is soaring, investment is booming, incomes are rising, inflation is defeated. America is respected again like never before,” said Trump. “There’s never been numbers like this.”
Trump said the stagflation (low growth, high inflation) that took place under his predecessor, Joe Biden, was “a disaster” for the country. Trump claimed the current economy has “the highest growth” it’s ever had.
“The Trump economic boom has officially begun,” said Trump.
The president said he would work with Venezuela on oil, and aims to reduce gas prices beyond its current six-year low.
Trump called Federal Reserve Chairman Jerome Powell “a real stiff.” He expressed a desire to have a high-performing market matched with lower interest rates, not higher — he said the former arrangement was the norm years ago.
“Our growth potential is unlimited and could be much higher if we went back to sanity,” said Trump. “We announce good numbers and we see the stock market drop. And I say ‘What the hell is going on?’”
Trump said he secured commitments for over $18 trillion in new investments into the country, compared to Biden’s under $1 trillion secured in four years.
A White House press release following Trump’s remarks maintained that the latest inflation report came in below economists’ expectations. Their statement compared Trump’s core inflation (2.4 percent) as “much lower” than former President Joe Biden’s 3.3 percent annual rate.
Their summary also emphasized that wages are “rising” on track to four percent: an estimated $1,100 real wage gain among private sector workers, and $1,300 real annual earnings gain among goods-producing workers.
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