Core Inflation Falls To Lowest Rate In Four Years

[upsideguy]

Yeah, well, it's consistent under Trump's term.

Now that we established the consistent trajectory, please explain why Trump gets any credit for today's news. What specific action has he done to keep the inflation trajectory going in the right direction, at least through April?

(hint -- well has removed $80B from the economy in the form of tariffs, so a reverse stimulus will work to slow the economy and put the inflation nose down ---- well, at least until the tariffs work their way back into the economy in the form of price increases, which will put the inflation nose back up in an even bigger way)

Frankly, I think the news today is only telling us we are in the eye of the inflation hurricane.... but we will see.

 

[iguanaman]

We watched the empty husk Mad Joe obliterate the economy for 4 years. It’s only been 4 months.

Biden had record economic growth and Trump has turned that around to a recessionary quarter in record time. You don't understand that I know.

 

[Metric Mouse]

COVID wasn't over in March 2021

An incredibly deadly month...

 

[Metric Mouse]

Biden had record economic growth and Trump has turned that around to a recessionary quarter in record time. You don't understand that I know.

We all remember Biden's "recessionary quarter." Some thought it was a big deal, and. Massive turn around from the strong and growing economy he was gifted.

 

[ALiberalModerate]

so much for recession.time to lower rates

Core Inflation Falls To Lowest Rate In Four Years

Over the past year, core prices are up 2.5 percent, the smallest year-over-year increase since March of 2021. | Economy

www.breitbart.com

rices barely climbed in April, pulling the annual rate of inflation down toward the Federal Reserve’s two percent target, even while personal income climbed at a rapid rate.


The personal consumption price index climbed 0.1 percent in April, the second month in a row in which consumers got relief from inflation that had plagued the economy throughout the Biden administration. In March, the index showed prices were flat.


Compared with a year ago, prices are up just 2.1 percent. That just one-tenth above the two percent rate of inflation the Fed says it targets. In March, prices were up 2.3 percent from a year earlier.


Core prices, a measure that excludes food and energy, also rose 0.1 percent. Over the past year, core prices are up 2.5 percent, the smallest year-over-year increase since March of 2021.

 

[Napoleon]

We all remember Biden's "recessionary quarter." Some thought it was a big deal, and. Massive turn around from the strong and growing economy he was gifted.

And that “transitory” inflation when he was finally forced to admit it was happening at all.

 

[upsideguy]

We watched the empty husk Mad Joe obliterate the economy for 4 years. It’s only been 4 months since he and the shadow government were deposed.

If Biden "obliterated the economy" then please explain why consulting economic editors of the Economist referred to the US economy as the 'envy of the world' in October 2024, in a very thorough, well reasoned article. So thorough, it was a "Special Edition."

What do you know that the experts do not? Please provide similar reasoning and thoroughness in your rebuttal. Of course your shallow, conspiracy theory induced post ("shadow government -- my god, what kind of trash are you reading?) I am referencing does not indicate that "reasoning" is one of your skill sets, but let's see.

The envy of the world | Oct 19th 2024 | The Economist

The envy of the world. Special reports from The Economist. You've seen the news, now discover the story.

www.economist.com

Frankly, I this particular article within did catch my eye...

What can stop the American economy now?

Toxic politics could derail America’s economic boom. The world should hope it does not

www.economist.com

Answer: Trump.

 

[OrphanSlug]

Probably has a lot to do with the record amount of credit card debt with extremely low reserves in savings coming back to bite the average American consumer in the ass.

Damn close, it is all types of debt that end up a weight on how consumers spend the rest.

Last I checked, and there were a few surprises, the debt by type is in this order:

1 - Mortgage debt
2 - Automotive debt (just flipped with 3)
3 - Student Loan debt
4 - Credit Card debt
5 - HELOC debt (home equity lines of credit.)

All 5 are at record numbers this year. What that really means, economically speaking on a larger scale, is the average person is already spending a significant percentage of their income on prior already spent commitments. So there is less disposable income in the event of emergency, the ole "percentage of Americans living paycheck to paycheck" debate because of general expectations of how various income quintiles are participating in the economy.

The further you go down the income levels the greater the impact of inflation, sometimes sharp Core PCE falling is not terrible news but *usually* it means something is coming economically speaking.

In this case, if we have 2 consecutive quarters of GDP decline (sometimes called sustained decline in economic activity.) People earning slight more, saving slightly more, slowing down spending certainly qualifies as "we should be concerned," because the why this happening suggests consumer sentiment is headed downward.

Not good news no matter how Trump loyalists spin this into some sort of win.

 

[OrphanSlug]

Well I just know about 1 month that imports are down basically 20%. Meaning that is a lot of stuff that won't be sold at retailers or a lot of things that won't be used for production to make even more valuable items. That is definitely not something that even a declining economy won't feel. Demand is not down 20%.

Well, the real reason 1st quarter GDP declined is retailers front loaded and overordered supply in advance of potential tariffs.

How GDP is calculated was the issue, the last element of the math is Net Exports. In our case that is usually a negative number anyway, not surprising we import more than export, but when importing shoots up quickly to avoid pending new costs of tariffs that negative number became worse. Something like 4.7% to 4.9% (calculation sources vary on this) was stripped off the overall GDP calculation for the 1st quarter.

In economic math terms, it hurt. In political terms, it was done on purpose as a response to another on purpose political action by Trump.

It was also risk, if the economy slowed further (and it looks to be happening,) then inventory sits. What happens when demand goes down and supply goes up, inflation cools.

And here we are talking about why Core PCE falling... it frankly was not as shocking as various sources are making it out to be. Consumer sentiment is falling, no matter what is said next by the MAGA faithful that this is suddenly good news.

 

[ElChupacabra]

Yeah, well, it's consistent under Trump's term.

It was consistently dropping during the last administration as well.

 

[Metric Mouse]

It was consistently dropping during the last administration as well.

Consistently rose, you mean. It was higher when he left office than when he entered, and never dipped down to the average of the administrations before him.

 

[MTAtech]

We all remember Biden's "recessionary quarter." Some thought it was a big deal, and. Massive turn around from the strong and growing economy he was gifted.

Biden was gifted a growing economy? It sure looks like Biden outperformed Trump.

Let's look at Real GDP:

Job Growth:

 

[BabaVoss]

so much for recession.time to lower rates

The Fed doesn't think so. That is kind of their job, so I will leave it to them.

 

[ncguy]

The Fed doesn't think so. That is kind of their job, so I will leave it to them.

the fed is right to be cautious, given that our resident economic moron in chief is doing his best man child behavior. No one knows what he will do, and if somehow tariffs resume in full force again, the fed is going to have to deal with it.

 

[Metric Mouse]

Biden was gifted a growing economy? It sure looks like Biden outperformed Trump.

Let's look at Real GDP:

Job Growth:

I merely pointed out Biden's quarter of decline in gdp. It happens.

He was still gifted a growing economy that was the envy of the planet.

Good for him.

Sucks that all the money went to the rich but that is starting to change with wages of workers starting to outpaced inflation again.

Are wages keeping up with inflation? | USAFacts

Yes. From April 2024 to April 2025, wages grew 1.8 percentage points faster than inflation. Nominal wages — the literal dollars earned regardless of cost of living — increased by 4.1% while inflation stood at 2.3%. When wage growth outpaces inflation, it indicates that workers are experiencing...

usafacts.org

 

[rahl]

Look at the lefties being angry that inflation is being brought under control. They’d rather die of starvation because of Bidenflation than admit they were wrong.

The hilarious ignorance of calling the covid caused GLOBAL inflation “bidenflation” is astounding

 

[Ikari]

View attachment 67572308

That's the Maoists Against a Great America strategy.

 

[rahl]

Further, look at the lefties trying to claim that it was Biden's policies which has brought down inflation, when it has already been established that Biden's spending explosion threw gas on inflation beyond what COVID and its supply chain had caused.

 

[Tettsuo]

We all remember Biden's "recessionary quarter." Some thought it was a big deal, and. Massive turn around from the strong and growing economy he was gifted.

Wow. How easily people succumb to brainwashing.

Trump ended his 1st term with a net job loss. How do you figure that this is a strong, growing economy?

 

[ModernDiogenes]

Consumer Price Index Data from 1913 to 2025

The Consumer Price Index (CPI-U) is provided by the U.S. Department of Labor Bureau of Labor Statistic and is used to measure inflation. The CPI is calculated and released monthly and powers this site's always-current Inflation Calculator, among other things. The government agency last updated...

www.usinflationcalculator.com

 

[rahl]

We watched the empty husk Mad Joe obliterate the economy for 4 years

. It’s only been 4 months since he and the shadow government were deposed.

The economy during Biden’s term absolutely boomed beyond anything we have seen this century.

 

[BabaVoss]

the fed is right to be cautious, given that our resident economic moron in chief is doing his best man child behavior. No one knows what he will do, and if somehow tariffs resume in full force again, the fed is going to have to deal with it.

Not sure what Trump is going to do - he has no idea either, I'm sure. But when he impaled himself with his tariff 'plan' and the bond market nearly collapsed, he very likely shat himself bigly in his expensive yet poorly tailored suit. (I'm guessing someone explained it to him like he was five.()

I don't believe we will see those numbers again. I doubt he will even win the legal fight this time around.

Trump is a stumbling, bumbling, idiotic disaster on global economics. On most things, actually.

.

 

[Metric Mouse]

Look at the lefties being angry that inflation is being brought under control.

For some people, it's party over country.

The cruelty is the point.

 

[BabaVoss]

Not sure this is something to get very excited about. It has been trending downward for several years now.
Don't get me wrong, it is a good sign.

 

[ncguy]

For some people, it's party over country.

The cruelty is the point.

Which lefties?