In a further indication of the Trump administration’s success, the inflation rate for February was lower than economists had predicted, with core consumer prices declining to their lowest level in almost four years.

“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,” Trading Economics reported.

White House Press Secretary Karoline Leavitt celebrated on Wednesday morning, noting: “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.”

According to the Bureau of Labor Statistics (BLS) at the Labor Department, the consumer price index increased by a seasonally adjusted 0.2%, resulting in an annual inflation rate of 2.8%. The Federal Reserve is aiming to reduce inflation to 2.0%.

Additionally, the BLS reported that inflation-adjusted average hourly earnings rose by 0.1% in February, a 1.2% increase from the previous year, the Daily Wire noted.

“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 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 Wall Street Journal noted.

The current policy rate from the Fed rests between 4.25%-4.50%.

“The February CPI release showed further signs of progress on underlying inflation, with the pace of price increases moderating after January’s strong release,” Kay Haigh of Goldman Sachs Asset Management reacted.

“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,” Haigh continued.

“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.”