Republican lawmakers cheered on President Donald Trump and his economic policies as the US Bureau of Labor Statistics (LBS) reported shrinking inflation for May.
LBS measured smaller growth in the Consumer Price Index (CPI), which increased 0.1 percent on a seasonally adjusted basis in May, after rising 0.2 percent in April.
The decrease from 0.2 to 0.1 means inflation is rising at a lower rate, even if still increasing.
President Trump and the White House celebrated the inflation data, which economists largely classified it as good news.
“Inflation in May came in LIGHTER THAN EXPECTED for yet another month,” said the White House. “Inflation has come in BELOW economists' expectations every single month since President Trump took office.”
Driving the decrease in inflation are products like gasoline and fuel oils, which have each seen dramatic price decreases since Trump took office.
“There's no way to look at these numbers and say they are not welcome news," remarked CNBC economists.
LBS data reveals, for example, that all energy commodity prices have decreased nearly 12% over the year while all overall energy-related prices are down 3.5%.
Conversely, energy prices rose dramatically during former President Joe Biden’s administration.
According to LBS data, natural gas and electricity prices rose 35% and 30%, respectively, while President Biden was in office.
Moreover, overall prices increased a whopping 20% during Biden’s tenure.
Republican lawmakers consequently brandished the slowdown in inflation as proof that Trump’s economic agenda is helping the American economy recover.
“Promises made, promises kept,” exclaimed Senator Rick Scott (R-FL).
As Trump enters the second half of his administration’s first year, White House economists could shift their attention toward products and services still suffering from increasing inflation.
Among these are medical and transportation services (3%), new and used vehicles (2.2%), and food (3%).
For now, Trump is harnessing the inflation data to argue the Federal Reserve should lower interest rates by “one full point.”
“Fed should lower one full point. Would pay much less interest on debt coming due,” said Trump via Truth Social.
