Washington, D.C.
Former President Donald Trump has declared that inflation in the United States is effectively over, pointing to newly released economic data showing that core inflation has fallen to its lowest level in nearly five years. The claim follows a fresh report from the U.S. Labor Department indicating a continued slowdown in price pressures across several key sectors of the economy.
According to the latest figures, overall consumer inflation eased again, while core inflation, which excludes volatile food and energy prices, showed its sharpest moderation since 2021. The data suggests that price growth is stabilizing after years of elevated inflation driven by pandemic disruptions, supply chain issues, and global energy shocks.
Trump, speaking at a public event and later on social media, said the numbers prove that inflation is “ended” and argued that strong economic leadership and market confidence have helped cool prices. He highlighted falling cost pressures in areas such as consumer goods, transportation, and select services, presenting the report as a turning point for American households.
White House-aligned economists welcomed the data, saying slower inflation provides relief for consumers and businesses alike. They also noted that easing price growth, combined with steady employment levels, could give policymakers more flexibility in the months ahead. Some advisers suggested that if the trend continues, it could strengthen the case for lower interest rates.
However, economists outside the political sphere urged caution. While acknowledging that inflation has slowed significantly from its peak, many stressed that prices are still rising, just at a slower pace. Core inflation, although at a multi-year low, remains slightly above the Federal Reserve’s long-term target of 2 percent.
Analysts also pointed to potential distortions in the data. A recent government shutdown disrupted parts of the data collection process, leading some economists to warn that the latest figures may not fully capture price movements in housing, healthcare, and other critical sectors. Federal Reserve officials have echoed that concern, saying several more months of consistent data will be needed to confirm a lasting trend.
Despite Trump’s optimistic declaration, consumer sentiment remains mixed. Surveys show that many Americans continue to feel financial pressure, especially from higher rents, insurance costs, and food prices that climbed rapidly over the past two years and have not fallen back.
The inflation report arrives at a sensitive moment for economic policy, as markets closely watch the Federal Reserve’s next moves. While easing inflation increases the possibility of future rate cuts, central bank officials have repeatedly said decisions will be based on sustained evidence rather than a single report.
As the debate continues, the latest data underscores a shifting economic landscape: inflation is clearly cooling, but whether it is truly “over” remains a matter of interpretation. For now, economists agree on one point the pace of price growth has slowed markedly, offering cautious optimism while leaving unanswered questions about what comes next for the U.S. economy.
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