Inflation Plunges — CNN Had to Admit It

Adriana Stone 0 1 min read

Inflation Plunges — CNN Had to Admit It

Good news on prices. The Bureau of Labor Statistics released numbers that surprised a lot of people — including CNN.

Headline CPI eased to 2.4% year-over-year in January. That’s down from 2.7% in December. Gasoline pulled back, helping the drop. Month-over-month prices were up just 0.2%.

CNN business reporter Matt Egan called the report “encouraging.” He said: “[T]his is some encouraging news on the cost of living. Inflation took a big step in the right direction to start the year off. So, consumer prices, up by 2.4% year over year,” Egan said. “That is an improvement from 2.7% in December. That beat expectations, which were for 2.5%. In fact, this is a new eight-month low for annual inflation. Month over month, prices up by 0.2%, also a step in the right direction, also beating expectations.”

More importantly for economists, core inflation — which strips out food and energy — cooled to 2.5% year-over-year. Egan noted the number is “the lowest annual inflation rate for core since March of 2021.” He explained: “Now, economists look really closely at core inflation, which excludes food and energy. Core inflation came in at 2.5%. That’s notable because that’s the lowest annual inflation rate for core since March of 2021, before the inflation crisis,” he continued. “Now, while we can’t exclude food and energy from our family budgets, that’s important because economists say that’s a better indicator for where inflation is going. And when you look at the trend for inflation over the last few years, you can see there’s been some improvement.”

This is a clear win for President Donald Trump’s economic narrative. Prices easing matters at the grocery store and the pump. It also matters politically: lower inflation takes pressure off households and the White House alike.

Critics who warned of runaway inflation under Trump look off their mark. Some high-profile economists warned inflation could spike — and the numbers show those warnings didn’t come to pass.

Markets and voters both watch core inflation. When core cools, it signals the underlying trend may be moving in the right direction. That’s what this report suggests.

Expect the debate to heat up. Opponents will point to volatility in energy and food. Supporters will point to steady improvement. Either way, the numbers are clear: inflation is meaningfully lower than it was months ago, and core inflation is at its lowest annual pace since early 2021.

Send this to a friend