President Trump just won the first round against inflation

Only one month in the job, President Donald Trump He has already supervised a significant improvement in the economy, while reducing the monthly inflation rate in half. With any action, inflation improved significantly in February, and the Trump administration is in an ideal position not only for slow inflation, but eventually lowering prices.

For February, in the first month of the Trump administration, the Consumer Prices Index (CPI) increased by only 0.2 percent of January. This was less than half of the 0.5 percent increase in prices from December to January, in the last month of Biden Administration.

What makes the slowdown in February more dramatic is that seven months have already been re -inflation. Simply put, Biden Trump handed over the chaos of inflation that gets worse, not better – at least, until Trump began unlike the radical Aiden Agends.

It reduces inflation in February, but Trump’s tariff can hinder progress

What a reflection! Instead of strangling its reliable US energy production, the new mantra is “potholes, children’s training”. Instead of additional stressful regulations, Trump undertakes to cut the bureaucratic red strip. Instead of an endless deficit as much as you can see the eye, Trump wants a budget budget.

Whether it is Tax ratesInternational trade, or Doug and the wasteful government spending, the Trump administration exactly unlike its predecessor, and the results are the sky of the American people who were destroyed by inflation.

In February, the annual inflation rate measured by the consumer price index decreased, but it also did the “basic” consumer price index, an indicator that excludes the volatile categories of food and energy. In fact, the annual rate of basic inflation has decreased to its lowest level since April 2021.

Basic inflation is seen closely because it is a way to remove extremist values. If food or energy prices change temporarily, as when the prices of eggs explode and then start to decrease, basic inflation can give a better feeling the way in which inflation is directed in the long run.

The inflation slowed slightly to 2.8 % in February before the Federal Reserve meeting

Fortunately, other ways to remove extremist values ​​from inflation measures also showed a great improvement in February. One of these statistics, which is the middle of the consumer price index, has declined to its lowest level since October 2021. Other statistics have fallen from these statistics, which is the consumer price index, to the lowest level since July 2021.

These declines are large because they show that the slowdown in inflation is very widespread. It is not as if one element or only two elements within the consumer price index witness a slower growth or low prices. Instead, the vast majority of components in the consumer price index witnessed a slower price growth in February.

Better, that a growing number of prices is not only slower, but completely declining. It occurs with eggs, gasoline and flying. Things are clearly turning in the right direction.

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However, momentum is an incredibly strong power in physics and economics. the Trump administration It effectively tries to stop the charging train, then make it change the direction. This will not take just a pale effort, but also the time.

Likewise, Biden was handed over a very low annual inflation rate of only 1.4 percent, and although he began implementing inflation policies literally on the first day, it was not until 18 months after that. Annual inflation rate It reached its peak at its highest levels.

By this point, prices rose in one month at the speed that was in the entire year before Biden took office. This dramatic increase took time, and it will take time to kill inflation completely.

February was a great first step, and if the Trump team continued to do so, they will get America for the rest of the way to stabilize the price.

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like Treasury Secretary Scott Bessin It describes this, this effort is a complete approach to the government. Reducing inflation involves the treasury that works on tax cuts, the Ministry of Energy that works to produce oil, gas, coal production, the Ministry of Commerce that works on international trade, and each department works on organizational reform.

Everything is on the deck in Trump administration To develop the economy while reducing prices. It is only the first half, but they are early.

EJ Antoni, an economist for general finance, is a Richard F. ASTER Fellow at the Heritage Foundation and an older colleague of prosperity.

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