The U.S. government announced on Wednesday that annual inflation has decreased to 3%, its lowest level since early 2021.
Although the figure would represent a relief compared to the inflation peaks of recent years, the data has generated mixed interpretations, in a context where money is increasingly purchasing less.
President Donald Trump proclaimed an economic victory based on questionable tactics, while markets and economists watch the figures provided by the White House with caution.
On his official Truth Social account, President Donald Trump stated that there is now "no inflation" and that the prices of gasoline, energy, and groceries "have gone down."
He also stated that he urged the Federal Reserve to lower interest rates, comparing the monetary policy of the U.S. with that of Europe and China.
"The FED must lower the rate, as Europe and China have done! What's happening with 'Too Late Powell'? It's not fair for America, which is ready to thrive," the president wrote, referring to the chairman of the Federal Reserve, Jerome Powell.
However, the consumer price index (CPI) report reveals a less encouraging reality.
Although general inflation has declined, prices for key products such as gasoline, toys, and auto parts increased last month, even before the new tariffs announced by the Trump administration took effect.
Economists warn that strong consumer spending, job growth, and the low unemployment rate could reactivate inflationary pressures in the coming months.
"Disinflation may have ended, and we could be facing a new cycle of more persistent inflation," warned Joseph Brusuelas, chief economist at RSM.
Trump himself had promised to "deflate" the economy during his 2024 campaign.
However, their current measures—such as imposing a 10% tariff on Chinese products and eliminating exemptions on steel and aluminum—could have the opposite effect, increasing import costs and driving up prices further.
Additionally, the White House has proposed aligning U.S. tariffs with import taxes from other countries, which could trigger trade retaliations and further distortions in the prices of essential goods.
"Trump's tariffs are beginning to worry the markets. People see these increases as a source of inflationary pressure, not relief," stated a report from the financial consulting firm Moody’s.
The president of the Fed, Jerome Powell, rejected Trump's calls to lower interest rates, reaffirming that the goal remains to bring inflation down to 2% in the long term.
"If inflation rises, we will use our tools—such as interest rates—to bring it back to a sustainable level," Powell said at a Congressional hearing.
The conflict between the White House and the Federal Reserve has reignited fears of potential politicization of monetary policy, as the U.S. economy confronts new internal and global uncertainties.
Although he is no longer in the White House, former President Joe Biden continues to be a target of criticism from Trump's team.
Presidential spokesperson Karoline Leavitt blamed the previous administration for the current "economic mess."
However, it does not mention that many of the low prices that Trump is now celebrating are due to measures such as the reversal of low drug prices implemented by the Biden administration: following the subsequent increase in those prices, the president announced this week that he will once again reduce the price of prescription medications and other pharmaceutical products.
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