Inflation Cools in January as Wages Rise

Buying power boosted for Americans, says former White House adviser

Published on Feb. 21, 2026

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Inflation in the United States slowed in January as wages rose, boosting Americans' buying power, according to data from the Bureau of Labor Statistics. Former White House economic adviser Steve Moore discussed the latest economic trends with The National News Desk's Jan Jeffcoat.

Why it matters

Slowing inflation and rising wages are positive signs for the U.S. economy, indicating that consumers have more purchasing power. This could lead to increased consumer spending and economic growth.

The details

The Consumer Price Index, a key measure of inflation, rose 0.5% in January, a slower pace than the 0.8% increase in December. Wages also rose, with average hourly earnings increasing 0.4% last month. Economists say the data suggests the Federal Reserve's interest rate hikes are starting to cool demand and bring down inflation.

  • The Consumer Price Index rose 0.5% in January 2026.
  • Average hourly earnings increased 0.4% in January 2026.

The players

Steve Moore

A former White House economic adviser who discussed the latest economic trends with The National News Desk.

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What they’re saying

“Slowing inflation and rising wages are positive signs for the U.S. economy, indicating that consumers have more purchasing power.”

— Steve Moore, Former White House Economic Adviser (The National News Desk)

What’s next

Economists will continue to monitor inflation and wage data to assess the overall health of the U.S. economy and the effectiveness of the Federal Reserve's monetary policy.

The takeaway

The latest economic data suggests that the Federal Reserve's interest rate hikes are starting to have the desired effect of cooling inflation, while also boosting Americans' buying power through rising wages.