Member
Inflation Figure Better Than Expected Amid Trump Economy
Charlie Kirk Staff
05/13/2025
The annual inflation rate in April was lower than analysts anticipated, reaching 2.3%, the lowest since February 2021.
The Labor Department reported Tuesday that the consumer price index increased by a seasonally adjusted 0.2% in April, according to CNBC. Although this represented a slight rise from the 0.1% year-over-year decline recorded in March, April’s 2.3% inflation rate still came in slightly below economists’ expectations of 2.4%.
The positive inflation data provided President Donald Trump with favorable economic news shortly after his “Liberation Day” tariffs took effect. The White House highlighted the figures on X, attributing them to the “TRUMP EFFECT.”
“For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!” Labor Secretary Lori Chavez-DeRemer added.
Food prices decreased slightly by 0.1% from March to April, driven largely by a 12.7% drop in egg prices. Used car prices also declined during April. Meanwhile, the consumer price index reported that energy costs rose 0.7% month-over-month, shelter costs increased 0.3%, and new car prices remained unchanged.
Over the past year, energy prices fell 3.7%, gasoline prices decreased by 11.8%, and fuel oil declined 9.6%. Conversely, electricity costs climbed 3.6% year-over-year, and natural gas surged by 15.7%.
This latest inflation data arrives as President Trump advances trade negotiations with China, providing some relief from tariffs. On Monday, the Trump administration announced an agreement to temporarily reduce reciprocal tariffs on China to 10% for 90 days, though the 20% tariff related to fentanyl remains intact.
In response, China lowered its retaliatory tariffs on U.S. imports to 10%. These tariff cuts, effective starting Wednesday, aim to facilitate ongoing trade talks between the two nations.
