Consumer prices dropped 0.1% in March 2025, marking the first monthly decline since early 2020, according to the latest Consumer Price Index (CPI) report.
The decrease comes amid President Donald Trump’s economic policies, which the White House suggested have contributed to falling energy costs and rising real wages.
The annual inflation rate settled at 2.4%, below analysts’ expectations of 2.5%, and reached its lowest point in six months. Energy prices fell 2.4%, largely driven by a 6.3% decrease in gasoline costs, while core inflation, which excludes food and energy, increased by just 0.1%.
Stephen Miran, chair of the Council of Economic Advisers, praised the results in an interview on CNBC, saying, “That core inflation print, on an annual basis, was the lowest core inflation print since March of 2021, so President Trump’s policies are working at keeping inflation at bay, keeping inflation down. Between that and what’s going on with trade — America is back.”
Economist E.J. Antoni highlighted the dramatic shift in inflation trends across different administrations.
“This is truly remarkable: Average annual inflation rate from ’09 until ’21 was 1.8%, then Biden drove it up to 8.6% for a year and a half, then it rose steadily at 3.1% for the rest of his term; but now Trump is averaging a mere 1.0% [annualized] – remarkable!” Antoni shared on social media.
CNBC’s Rick Santelli expressed surprise at the CPI report’s findings, stating, “We were expecting the exact opposite … These are definitely low numbers!”