Washington, D.C. – August 12, 2025 — The White House on Tuesday welcomed new Consumer Price Index (CPI) data showing that U.S. inflation remained low and stable in July, while real wages continued to rise.
The report indicated that inflation has been tracking at 1.9% since President Donald Trump returned to office, surpassing market expectations. White House Press Secretary Karoline Leavitt said the numbers reflect the administration’s “America First” economic approach.
“The Panicans continue to be proven wrong by the data – President Trump’s tariffs are raking in billions of dollars, small business optimism is at a five-month high, and real wages are rising,” Leavitt said.
Key figures from the latest data:
Real wages: Average weekly earnings, adjusted for inflation, rose 1.3% year-over-year in July, with gains every month since January 2025.
Working hours: Average weekly hours also increased, contributing to higher incomes.
Falling prices: Notable declines include gasoline (-10% y/y), smartphones (-14.7%), and eggs (-20% since January). Additional decreases were recorded in fuel oil (-2.9%), hotels (-4.8%), peanut butter (-3.3%), and frozen vegetables (-2.2%).
Shelter costs: Shelter inflation fell to its lowest level since October 2021.
Small business sentiment: A Bloomberg survey showed optimism among U.S. small businesses reached a five-month high in July, with owners more upbeat about the economic outlook and expansion plans.
The CPI release comes as the administration underscores strong consumer purchasing power and falling costs for everyday essentials, giving households a boost ahead of the back-to-school shopping season.
