Annual inflation in 2025 came in at 2.7 percent — the lowest annual rate since 2020, when President Donald Trump was last in office.
According to the Bureau of Labor Statistics data released Tuesday, the annual inflation rate for 2025 was 2.7 percent. Inflation for shelter rose 0.4 percent in December “and was the largest factor in the all items monthly increase,” the Bureau of Labor Statistics reported. Food prices rose 0.7 percent in December while energy prices rose 0.3 percent. Even so, the annual inflation rate for 2025 matched economists’ expectations.
That 2.7 percent figure is especially notable because it marks the first time inflation has returned to something resembling normal since before former President Joe Biden took office. In the final year of Trump’s first term, annual inflation was just 1.4 percent. Under Biden, inflation skyrocketed, reaching 7.0 percent in 2021, 6.5 percent in 2022, before slowing to 3.4 percent in 2023 and 2.9 percent in 2024.
Even CNN acknowledged the improvement, reporting that “the final CPI for the year did show some progress occurred: The overall and core inflation rates of 2.7% were cooler than January’s 3% and 3.3% rates, respectively, BLS data shows.”
Trump touted the latest numbers in a Truth Social post, writing: “JUST OUT: Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!!…ALSO OUT, GREAT GROWTH NUMBERS. Thank You MISTER TARIFF!”
Yet some Democrats refused to acknowledge the reality. House Minority Leader Hakeem Jeffries claimed in a post on X: “Inflation is up … and the Republican economy is a complete disaster.”
But the data says otherwise. Compared to the inflation crisis under Biden, today’s numbers make the contrast between Democrat and Republican leadership hard to ignore.
Brianna Lyman is an elections correspondent at The Federalist. Brianna graduated from Fordham University with a degree in International Political Economy. Her work has been featured on Newsmax, Fox News, Fox Business and RealClearPolitics. Follow Brianna on X: @briannalyman2
