Core consumer prices fell in February to their lowest level in nearly four years as the inflation rate came in lower than economists had predicted, the latest figures show.
The news is another huge win for President Donald Trump’s administration.
In response to the figures, Trading Economics reported:
“The annual core consumer price inflation rate in the United States, which excludes items such as food and energy, eased to 3.1% in February 2025, from 3.3% in the prior month and below market expectations of 3.2%.
“It is the lowest figure since April 2021.”
On Wednesday morning, White House Press Secretary Karoline Leavitt celebrated the news, stating:
“Today’s CPI report shows inflation is declining, and the economy is moving in the right direction under President Trump.
“Core consumer prices, which is the best measure of inflation, dropped to its lowest level in FOUR years.
“This inflation report, much like last week’s jobs report, is far better than the media predicted and the so-called ‘experts’ expected.”
The consumer price index only rose by a seasonally adjusted 0.2%, according to the Bureau of Labor Statistics (BLS) at the Labor Department.
It puts the annual inflation rate at 2.8%.
The Federal Reserve is aiming to reduce inflation to 2.0%.
BLS also reported that inflation-adjusted average hourly earnings rose 0.1% in February.
The figure is up 1.2% from one year ago.
“Economists surveyed by Dow Jones had been looking for 0.3% increases on both headline and core, with respective annual rates of 2.9% and 3.2%, meaning that all of the rates were 0.1 percentage point less than expected,” CNBC reported.
“A deceleration in airfares and gas prices helped drive February’s cooldown,” Barron’s explained.
The slowing of inflation might cause Federal Reserve officials to consider rate cuts.
The Wall Street Journal noted:
“The Fed plays closer attention to a separate gauge that analysts said could show firmer price pressures in February.
“That reading won’t appear until later this month, but a third inflation series due Thursday will tell officials where their preferred measure is likely to stand.”
The current policy rate from the Fed rests between 4.25%-4.50%.
In a statement reacting to the news, Kay Haigh of Goldman Sachs Asset Management said:
“The February CPI release showed further signs of progress on underlying inflation, with the pace of price increases moderating after January’s strong release.
“While the Fed is still likely to remain on hold at this month’s meeting, the combination of easing inflationary pressures and rising downside risks to growth suggest that the Fed is moving closer to continuing its easing cycle.”
“A lot of this inflation data does not incorporate what is to come and what already has happened for tariffs,” Kevin Gordon, senior investment strategist at Charles Schwab, warned.
“The vagaries and uncertainties associated with policy are still a much stronger force in the market than anything CPI-related or in terms of one data point.”
Egg prices rose 10.4% in February.
However, the Trump administration is addressing that problem.
In February, U.S. Secretary of Agriculture Brooke Rollins announced a $1 billion comprehensive strategy to prevent avian influenza (HPAI) and protect the U.S. poultry industry.
“The Biden administration did little to address the repeated outbreaks and high egg prices that followed,” Secretary Rollins stated.
“By contrast, the Trump administration is taking the issue seriously.
“American farmers need relief, and American consumers need affordable food.
“To every family struggling to buy eggs: We hear you, we’re fighting for you, and help is on the way.”
READ MORE – Karoline Leavitt Shreds AP Reporter for ‘Trying to Test’ Her on Economics
