New data shows inflation cooled slightly in January
WASHINGTON (NEXSTAR) -- A new report out from the Commerce Department shows inflation cooled off slightly last month.
The Personal Consumption Expenditures price index showed inflation rose 2.5% from the year before, down from December's 2.6%.
"I think consumers look at all this and basically feel like it's noise, because the price levels continue to go up," Bankrate Senior Economic Analyst Mark Hamrick said.
Hamrick says Americans are still reeling from having their buying power erode over the past few years, so as long as prices are still climbing, "that's what people focus on."
Democrats in Congress are also focused on inflation. House Democratic Leader Rep. Hakeem Jeffries criticized Republicans and the Trump administration.
"What happened to lower grocery prices on day one?" Jeffries asked.
The White House says it doesn't work like that.
"In a perfect world we can flip a light switch and inflation goes back to 1.9%," White House Deputy Press Secretary Harrison Fields said.
Fields says the administration is taking every step it can to lower prices.
"We are looking at deregulation, we are looking at tax cuts, we're looking at bringing back our energy infrastructure," Fields said. "We are doing so many things."
The report comes ahead of new 25% tariffs set to take effect on goods from Canada and Mexico next week.
"Tariffs are a tax that have to be paid through some combination of the business that does the importing as well as the consumers that pay for the good," Hamrick said.
Hamrick says the uncertainty of tariffs, and other actions from President Trump, like deportations and federal layoffs, will have economic impacts, but it's unclear what exactly the extent will be.
"So that's sort of the wait and see part of all this," Hamrick said.