Tara Clark / Unsplash
CV NEWS FEED // In a major economic win, core consumer prices in the US have dropped to their lowest levels in nearly four years, as inflation cools faster than economists expected.
The Bureau of Labor Statistics reported Wednesday that the consumer price index (CPI) rose only 0.2% in the past month, bringing the annual inflation rate down to 2.8%, below the anticipated 2.9%. Core inflation—widely considered the best measure of inflation—also dipped to 3.1%, undercutting forecasts of 3.2%.
The White House celebrated the numbers as a victory for President Donald Trump’s economic policies.
“Today’s CPI report shows inflation is declining and the economy is moving in the right direction under President Trump,” White House Press Secretary Karoline Leavitt said.
“As he successfully did in his first term, President Trump is driving down costs through massive deregulation and energy dominance,” Leavitt added. “The entire Trump Administration will continue to focus on fixing the economic and inflation nightmare created by the Biden-Harris Administration to unlock the Golden Age of America.”
A video circulating on X shows CNN acnkowledging the positive news, with an anchor stating, “Finally, we have some good news on the economy… both of these figures were a step in the right direction, and BOTH were better than expected… this actually breaks a streak of four straight months where the inflation rate was going in the wrong direction.”
Meanwhile, gas prices have dropped for the third consecutive week, according to GasBuddy data, which tracks over 150,000 gas stations nationwide. Airline fares have also dropped 4%, while mortgage rates have hit their lowest levels since December.
Patrick De Haan, head of petroleum analysis at GasBuddy, noted, “The average price of gasoline in the U.S. hasn’t been this low in March since 2021, when the pandemic significantly reduced demand and kept prices suppressed.”
While egg prices spiked to 10.4% in February amid the ongoing avian flu crisis, US Department of Agriculture (USDA) Secretary Brooke Rollins recently announced a $1 billion plan to combat outbreaks, with early data suggesting a potential decline in prices.
Despite these positive trends, some experts warn that future inflation risks remain. As the Daily Wire reported, Kevin Gordon, senior investment strategist at Charles Schwab, warned, “A lot of this inflation does not incorporate what is to come and what already has happened for tariffs,” referencing the recent Canadian tariffs.
However, the Trump administration remains steadfast in its economic strategy, gaining support from many American businesses.
Steel Manufacturers Association President Philip K. Bell praised Trump’s trade policies in a statement Wednesday. “Today marks another major step forward that President Trump has taken to defend our national, economic and energy security and create more American jobs,” Bell said.
“President Trump is delivering on his promise to put America first and his actions today put the domestic steel industry in a position to again be the envy of the world,” he concluded.
A White House briefing document also highlighted unprecedented job creation, as major companies like GE Aerospace and Asahi Group Holdings announce significant investments in US-based manufacturing operations across the country.
National Economic Council Director Kevin Hassett said on Fox News, “You can see that President Trump’s policies are working, and they’re working already.”
