Inflation slows to 2.3%, marking lowest rate since 2021 as Trump policies reverse Biden-era price surges

By isabelle // 2025-05-14

Mastodon

Parler

Gab

Copy

The U.S. inflation rate dropped to 2.3% in April, the lowest since early 2021, offering some relief after years of high prices under the Biden administration.
Core inflation held steady at 2.8%, while food and used vehicle prices declined, though shelter costs remained stubbornly high.
President Trump’s trade policies and fiscal discipline are credited with easing inflation, though risks of future price hikes persist due to potential tariff impacts.
The Federal Reserve remains cautious, with traders now expecting only two rate cuts this year amid concerns over trade tensions and stagflation risks.
While inflation shows signs of cooling, challenges remain, and Trump’s policies aim to stabilize the economy after years of financial strain under Biden.

The U.S. inflation rate cooled to 2.3% in April, its lowest level since February 2021, signaling a potential reprieve for American consumers after years of soaring prices under the Biden administration. The latest Consumer Price Index (CPI) data, released by the Bureau of Labor Statistics (BLS), shows a continued deceleration in price increases, with core inflation (excluding food and energy) holding steady at 2.8%. While shelter costs remain stubbornly high, declines in food and used vehicle prices have contributed to the easing trend. The slowdown comes as President Trump’s trade policies and fiscal discipline begin reshaping the economic landscape, though risks of future inflation persist.

A welcome relief after Bidenflation’s devastation

For years, Americans suffered under the crushing weight of "Bidenflation," with prices skyrocketing at rates unseen in decades. At its peak, inflation surged to 9.1% in June 2022, eroding wages, depleting savings, and forcing families to cut back on essentials. The Biden administration’s reckless spending, money printing, and regulatory overreach fueled the crisis, leaving working-class Americans struggling to afford groceries, gas, and housing. Now, under President Trump’s leadership, fiscal restraint and pro-growth policies are finally reversing the damage. The April CPI report revealed a 0.2% monthly increase, slightly below expectations, while annual inflation dipped from 2.4% in March to 2.3%. Core inflation remained unchanged at 2.8%, suggesting that while progress is being made, underlying price pressures have not yet fully subsided.

Shelter and energy costs remain key drivers

Shelter prices, which account for roughly one-third of the CPI, rose 0.3% in April, contributing to more than half of the overall monthly increase. Energy prices rebounded by 0.7% after a 2.4% drop in March, driven by higher natural gas and electricity costs. However, gasoline prices declined slightly, offering some relief at the pump. Food prices, a major pain point for households during the Biden era, dipped 0.1% in April. Egg prices plummeted 12.7% from March, though they remain a staggering 49.3% higher than a year ago due to lingering supply disruptions from bird flu outbreaks. Used vehicle prices fell for the second straight month, dropping 0.5%, while new vehicle prices remained flat. Apparel costs also declined by 0.2%, signaling easing pressure in consumer goods.

Trump’s trade policies and the Fed’s next move

President Trump’s aggressive trade policies, including new tariffs on imports, have introduced uncertainty into the inflation outlook. While the April CPI did not yet reflect significant tariff-related price hikes, economists warn that future months could see renewed inflationary pressures if trade tensions escalate. However, Trump has recently softened his stance, delaying new tariffs on China for 90 days to allow for negotiations. The Federal Reserve, meanwhile, remains cautious. Fed Chair Jerome Powell has warned that sustained tariff increases could lead to higher inflation, slower growth, and rising unemployment — conditions resembling stagflation. Traders, who once anticipated three rate cuts this year, now expect only two, with the first likely in September.

A turning point for the economy?

The latest inflation data suggests that Trump’s policies — reducing government waste, cutting taxes, and reining in reckless spending — are beginning to stabilize the economy. While challenges remain, the downward trend in inflation offers hope for American families who have endured years of financial strain. However, vigilance is necessary. The radical left, which thrived under Biden’s artificial economy of slush funds and money laundering, may seek to exploit economic instability to foment unrest. As Trump continues to dismantle the deep state’s financial schemes, Americans must remain prepared for potential disruptions. After years of economic mismanagement, the U.S. is finally seeing signs of recovery. Inflation is cooling, consumer prices are stabilizing, and fiscal responsibility is being restored. While the road ahead may still be rocky, the Trump administration’s commitment to free-market principles and limited government offers a path to lasting prosperity. For now, Americans can breathe a little easier knowing that the days of Bidenflation are fading into the past. Sources for this article include: YourNews.com NYPost.com CNBC.com