Price growth sped up unexpectedly in January, posing an early challenge to President Donald Trump’s economic agenda.
Inflation for so-called core items, which exclude volatile food and energy prices, climbed 3.3% over the past 12 months, the Bureau of Labor Statistics reported Wednesday, above economists’ expectations of 3.2%. On a monthly basis, the inflation measure rose 0.4%, exceeding forecasts for 0.3%.
Trump regained the White House vowing to lower prices “immediately,” promising voters on the campaign trail that he’d begin doing so “starting on Day One.” But the president, who is 24 days into his new term, cast blame on his predecessor Wednesday morning, writing on his Truth Social platform, “BIDEN INFLATION UP!”
While BLS report’s survey period does not cover Trump’s first weeks in office, the fresh data shows the challenge of slowing price growth could be more difficult than Trump and many economists had hoped.
Egg prices soared more than 15%, the biggest jump since 2015, largely fueled by an outbreak of bird flu. Housing costs, vehicle insurance, airfares and education prices also rose even as prices fell for appliances, furniture and many types of apparel — possibly reflecting holiday-season discounts.
Across the consumer economy, there are signs that many households are pulling back. McDonald’s on Monday reported its biggest sales drop since the pandemic, with a slight uptick in traffic but diners spending less. With airline ticket prices climbing, low- and…
