A new report released on Wednesday reflected economic trends that exceeded expectations. The Consumer Price Index (CPI) increased 0.1 percent for the month of May, as reported by the U.S. Bureau of Labor Statistics.
The White House released a statement noting that the most recent CPI continues the progress towards inflation reduction under the Trump administration, pointing out that inflation has come in below predicted rates every month since President Trump took office. The report also showed that core inflation has remained steady and continues to come in at the lowest levels seen since March 2021.
Despite predictions of the economic impact from President Trump’s tariff policy, increases in consumer prices have come in below expectations. The core Consumer Price Index, excluding food and energy, displayed increases of 0.1 percent and 2.8%. These rates fell below the projected rates of 0.3 percent and 2.9 percent.
Vehicles and apparel were two major consumer item categories predicted to show price hikes due to tariffs. Contrary to economic forecasts, both categories of consumer goods experienced price declines. New vehicles posted a 0.3 percent decline in price while used vehicles declined 0.5%. The index showed a 0.4 percent drop in prices for apparel.
President Trump celebrated the report in a post on Truth Social, calling on the Fed to lower interest rates in response to the positive news on inflation.
“CPI JUST OUT. GREAT NUMBERS! FED SHOULD LOWER ONE FULL POINT. WOULD PAY MUCH LESS INTEREST ON DEBT COMING DUE. SO IMPORTANT!!!” Trump said.
Vice President JD Vance also took to social media to back up President Trump’s statements on interest rates with a post on X.
“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance said.
