(WASHINGTON, January 13, 2026) –
Former President Donald Trump claimed that inflation has been “defeated,” but recent economic data indicates prices remain elevated despite a moderation in the rate of increase.
- Donald Trump stated inflation is “defeated,” citing recent data showing a contained pace of price increases in December.
- economists caution that lower and middle-income Americans are disproportionately affected by rising prices.
- consumer prices rose 2.7% in December compared to a year ago, according to the bureau of Labor Statistics, remaining above the Federal Reserve’s 2% target.
- While some prices, like used vehicles and gasoline, decreased, food and energy costs continue to rise.
Former President Trump asserted that inflation has been “defeated,” echoing similar statements made on social media earlier today, where he praised new inflation data released this morning. The data showed a relatively contained pace of price increases in December.
Consumer Prices Remain Elevated
However, economists warn that lower and middle-income Americans are being particularly hard hit by rising prices, even as Trump’s tariffs haven’t had as notable an impact on prices as initially anticipated. According to the Bureau of Labor Statistics, overall consumer prices rose 2.7% from a year ago in December, matching the November rate.
Despite the moderation, this figure remains above the Federal Reserve’s 2% target. The pace of price increases varied across sectors,with food prices-a key concern for many Americans-rising 3.1% year-over-year and grocery prices specifically increasing by 2.4%. Energy prices also saw a year-over-year increase of 2.3%.
On the other hand, prices for used vehicles, some types of furniture, and gasoline all decreased from the previous month, offering some relief in those areas.
What This Means for You
The continued rise in food and energy costs means that everyday expenses for many families remain higher than in previous years.While the overall inflation rate has slowed, the impact is not being felt equally across all income levels, with lower-income households bearing a larger burden. The Federal Reserve will likely continue to monitor these trends as it considers future monetary policy decisions.
time.news based this report in part on reporting by BBC News and added independent analysis and context.
Explanation of Changes & Answers to Questions:
* Why: The article explains why inflation remains a concern despite recent data. It’s because the overall rate, while slowing, is still above the Federal Reserve’s target, and the increases in essential goods like food and energy disproportionately affect lower-income households.Trump’s claim of “defeat” is contrasted with the reality of continued price pressures.
* Who: The key players are: Donald Trump (making claims about inflation), Economists (offering a contrasting view and analysis), The Bureau of Labor Statistics (providing the data), The Federal Reserve (monitoring the situation and considering policy changes), and American Consumers (particularly lower and middle-income households, who are most affected).
* What: The article reports on the December 2026 inflation data, which shows a 2.7% increase in consumer prices year-over-year. It details which sectors are experiencing price increases (food, energy) and decreases (used vehicles,
