Is the Media Hiding the Real Economic Boom? Inflation Drops and Real Wages Surge
the staff of the Ridgewood blog
Ridgewood NJ, The latest economic data is in, and the numbers tell a story that much of the mainstream media seems to have missed: inflation is cooling, wages are rising, and American affordability is finally on the upswing.
The Numbers Don’t Lie: Real Wages Are Growing
January brought a wave of bullish economic statistics. Average wages rose by 0.4%, while consumer prices saw a modest increase of only 0.2%. This trend, which has been consistent throughout 2025, means that “real wages”—your actual purchasing power—are growing.
For the average American, the weekly paycheck now buys approximately 2% more than it did at the start of the current administration, a significant reversal from the 4% decrease in purchasing power seen in previous years.
Why the Media is “Surprised” by Cooling Inflation
Despite clear signals, outlets like The New York Times and Bloomberg reported the easing inflation as “unexpected.” However, the Bureau of Labor Statistics (BLS) confirmed that annualized inflation dropped to 2.4% in January, down from 2.7% in December.
While the press characterizes this as a surprise, private sector data from providers like Truflation—which recently clocked US CPI at just 1.16% Y/Y—and leaders like Treasury Secretary Bessent have been highlighting this cooling trend for months.
Partisan Perception vs. Economic Reality
A striking Gallup survey from January 2026 highlights a massive “partisan divide” in how Americans view the economy:
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86% of Democrats expect higher inflation.
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59% of Republicans expect lower inflation.
This disconnect suggests that political leanings, rather than raw data, are driving the narrative in many newsrooms. Even former officials from the Obama and Biden administrations, such as Jared Bernstein and Jason Furman, have had to acknowledge that the current inflation reports are “reassuring” and “benign.”
The Road Ahead: The Fed and the Future of Rates
The focus now shifts to the Federal Reserve. President Trump has frequently criticized Chairman Jerome Powell for being “too late” to cut interest rates. With Kevin Warsh tapped to lead the Fed, the administration is pushing for policies that could further fuel private-sector job creation and drive inflation even lower.
As housing and food costs continue to trend downward, the fundamental economic outlook remains strong—regardless of whether the “experts” predicted it or not.
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Of course they are. After all that stuff about how tariffs are going to ruin us, only to find out they are having an enormous positive impact, they are going in hard on the Trump-Epstein piece, that’s only coming up crickets.
Excellent observations. I was surprised by the jump in real wages you also pointed out here. That is a significant positive improvement and opposite of the constant K-shaped economy narrative the media wants to push.