President Donald Trump is not happy with the latest inflation numbers. The Consumer Price Index (CPI) rose by 3% in January compared to the previous year, according to a report from the Labor Department released on Wednesday. This is an increase from December’s 2.9%, and it’s a setback for Trump’s administration early in his term.
Axios reporter Marc Caputo called the disappointing numbers a “warning sign” for Trump. However, the president quickly shifted blame to former President Joe Biden, posting on Truth Social, “BIDEN INFLATION UP!” He criticized the rising costs of groceries, gas, and used cars, even though he had repeatedly promised to lower grocery prices. Despite these promises, prices remain high nearly a month into his presidency.
Social media users were quick to mock Trump for blaming Biden. One user on X (formerly Twitter) joked, “They’re calling it TRUMPFLATION.” The Lincoln Project, a political group, also questioned Trump’s strategy, asking, “What’s his excuse when it’s up again in March?”
The unexpected rise in inflation could hurt the optimism among businesses that followed Trump’s election, which was fueled by his promises to cut taxes and reduce regulations. Following the report, Dow futures dropped by 400 points, and bond yields increased, signaling that traders expect inflation and interest rates to stay high.
Core consumer prices, which exclude food and energy, rose by 3.3% in January compared to the previous year, up from 3.2% in December. Economists pay close attention to core prices because they can indicate where inflation is headed. On a monthly basis, overall prices jumped 0.5% in January, the largest increase since August 2023, while core prices rose 0.4%, the most since March 2024.
Grocery prices also saw a significant increase, rising 0.5% in January alone. Egg prices surged by 15.2% in just one month, the biggest monthly jump since June 2015, and are now 53% higher than a year ago. This spike in food costs is adding to the financial strain on many households.
