Less than two months into Donald Trump’s presidency and inflation is already falling more than expected.
In February, prices didn’t rise as much as expected, offering some relief to consumers and businesses, according to the Bureau of Labor Statistics.
A key measure of inflation, the Consumer Price Index (CPI), increased 0.2 percent for the month, bringing the annual inflation rate to 2.8 percent.
This was a slowdown from January when prices had gone up 0.5 percent.
When excluding food and energy, which tend to have more price swings, core inflation also rose 0.2 percent for the month and 3.1 percent over the past year, the lowest rate since April 2021.
CNN just aired Trump’s first inflation report—better than expected and reversing four straight months of rising inflation under Biden.
America is healing! pic.twitter.com/JyG74moYhG
— Libs of TikTok (@libsoftiktok) March 12, 2025
Experts had predicted slightly higher numbers—a 0.3 percent increase for both overall and core inflation, with annual rates at 2.9 percent and 3.2 percent, but the actual figures ended up being 0.1 percent lower than expected.
BREAKING: America recorded its lowest core inflation in four years
Elon Musk was spot on when he said that if we tackle the massive waste in government, we can actually address inflation. pic.twitter.com/idHIfccenk
— DogeDesigner (@cb_doge) March 12, 2025
The figures are positive news for President Trump, who made bringing down inflation and the cost of goods one of the central planks of his presidential campaign.
During the Biden presidency, inflation soared from just 1.4 percent all the way up to 9 percent, which had a devastating impact on peoples living standards and was one of the many factors that resulted in Trump winning the 2024 presidential election so convincingly.
ALL HE DOES IS LIE: Biden Claims Inflation Was 9 Percent When He Took Office (It Was 1.4 Percent)
“Today’s CPI report shows inflation is declining and the economy is moving in the right direction under President Trump,” said White House press secretary Karoline Leavitt.
“This inflation report, much like last week’s jobs report, is far better than the media predicted and the so-called ‘experts’ expected.”
However, Trump recently said he would not rule out the possibility of a recession, a comment that spooked markets.
“I hate to predict things like that,” he said when asked about the likelihood of a recession in an interview with Fox News’s Maria Bartiromo.
“There is a period of transition because what we’re doing is very big.”
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