The Trump administration says it has made major progress in lowering prices and easing cost-of-living pressures, according to a White House press release issued Friday. The administration claims inflation has fallen to an average of 2.7% during President Donald Trump’s second term, compared to what it described as an average of nearly 5% under the Biden administration.
According to the release, inflation “hit 9.1%” during Biden’s term before declining under Trump. The White House says the 2.7% figure represents “the critical first step in reversing Democrats’ cost-of-living disaster” and claims Americans have seen “the first overall price decline since 2020.”
The release does not specify whether the 2.7% figure reflects headline CPI, core inflation, or an internal White House calculation.
The administration also says Americans have experienced real wage gains during Trump’s second term. According to the release, real wages have increased by nearly $700 after adjusting for higher prices and are on track to increase by roughly $1,200 after Trump’s first full year in office. The document contrasts this with what it describes as a $2,900 loss in purchasing power under Biden.
Gas prices have also fallen, the White House claims. The release states Americans are seeing “the lowest average gas price in more than four years” and are on pace to spend the lowest percentage of their disposable income on gasoline in two decades. It attributes this trend to the administration’s “energy dominance vision.”
Food and housing prices are also cited as improving. The release says prices have declined for items such as eggs, butter, ice cream, fresh fruit, cereal, fish, seafood, rice, pasta, and ham. It also states that housing costs are moderating, noting that the average 30-year fixed mortgage rate was 6.17% at the end of October — a level the White House says is 12% lower than when Trump took office. The release further cites Consumer Price Index data showing the 12-month change in shelter costs is at its lowest level in four years.
The White House attributes the trends to policy actions, arguing that “deregulatory efforts” are saving Americans a collective $180 billion — or $2,100 per family of four. The release also highlights Trump’s recently signed tax legislation, including provisions eliminating taxes on tips, overtime, and Social Security benefits, which it claims will raise take-home pay by up to $13,300 and wages by up to $11,600.
The administration further says companies have invested “trillions of dollars” in U.S. operations since Trump returned to office, creating “hundreds of thousands” of jobs. According to the release, 1.9 million more American-born workers are employed today than when Trump took office, and more Americans are working now “than at any time in the history of our country.”
The White House also projects a reduction of the federal deficit through what it describes as a combination of spending cuts, interest savings, economic growth, and tariff revenues.
“The Trump Administration will not rest until the high prices that resulted from Democrat policies are fully reined in,” the release concludes. “We’re making progress — and the best is yet to come.”