The Bureau of Labor and Statistics (BLS) releases the Consumer Price Index for February [DATA HERE], reflecting a drop in the year-over-year inflation rate to the lowest level in four years.
The rate of inflation dropped significantly due to lower gasoline (-6.3%) and fuel prices, which directly impacts every middle-class worker. The ripple effects (transportation, warehousing, etc.) from lowered gasoline prices is not yet embedded in the cost of goods, that should start to surface next month.
[…] Consumer prices were up 2.4% in March from a year earlier, the Labor Department said Thursday, cooler than February’s gain of 2.8% and well below the 2.6% rise that economists expected.
Prices excluding food and energy categories—the so-called core measure economists watch in an effort to better capture inflation’s underlying trend—rose 2.8%, below forecasts for a 3% increase. That was the smallest increase in the core measure since March 2021. (read more)
For those who have travelled the MAGAnomic weeds with us, you will note this is the way overall lower inflation starts to surface under Trump policy. This is exactly what happened in 2017 and continued throughout late 2019 until COVID-19 hit. President Trump’s economic policies drop the rate of inflation, and eventually lower prices.
The downward price pressure from lower energy costs will eventually surface in lower food costs.
The same media who said Joe Biden was not responsible for massive inflation, will also say President Trump is not responsible for dropping inflation. However, the average American can see that under Joe Biden stuff cost more, and under Donald Trump stuff starts costing less. Policy does change prices.
Wall Street will hate these results, Main Street will love them.
