Core inflation again hit its lowest level in over four years.

WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) report for December 2025, showing core inflation again beating expectations: 

“The economic policies of President Trump and congressional Republicans continue to make life more affordable for working families who felt the sting of the Biden Administration’s inflation crisis. For the second month in a row, core inflation was at its lowest level in over four years – down to a level Democrats could not deliver with Joe Biden’s big spending agenda. Families have higher real wages after one year of President Trump compared to falling real income under Biden. When Americans get tax refund checks this spring, they will see how Republican tax cuts for working families put more money in their pockets with the largest tax refunds ever. A family can expect an average tax refund of $4,000, the equivalent of five months of groceries. Republicans are fighting to make sure Americans better afford the cost of living.”

Key Facts

•  Real Income Is Up: Real wages have increased 1.2 percent since January 2025 compared to a 1.6 percent decline during Joe Biden’s presidency. 
• Private Sector Creates Jobs, Not Government: Under President Trump, the private sector is growing and creating jobs while the government is shrinking.
• GDP Growing Faster than Expected: GDP grew at an annualized rate of 4.3 percent for the third quarter of 2025, more than double the Congressional Budget Office’s projection of 1.9 percent annualized rate.