CNN business reporter Matt Egan on Wednesday highlighted how inflation is decelerating under President Donald Trump’s administration following acceleration in the final months of former President Joe Biden’s tenure.
Inflation slowed in February as the Consumer Price Index (CPI), a measure of the price of everyday goods, increased 2.8%, according to a Bureau of Labor Statistics (BLS) report released Wednesday. Egan, on “CNN News Central,” said this statistic, along with the 0.2% month-over-month increase, were positive developments and marked a noteworthy change from the inflation acceleration during the last four months of former Biden’s administration.
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“Finally, we have some good news on the economy and really the number one issue for many Americans, the cost of living,” Egan said. “So we just learned that consumer prices in February increased by 2.8% year-over-year, 0.2% month-over-month. Both of these figures were a step in the right direction. And both were better than expected.”
“So this is definitely very encouraging to see because it’s going to, I think, relieve some fears that inflation was perhaps reaccelerating because this actually breaks a streak of four straight months … where the inflation rate was going in the wrong direction, right?” he continued. “It was going higher and higher. Finally, we’re seeing it dip. Not back to the 2% goal, but nice to see it cool off here.”
Egan also noted that egg prices rose 10.4% month-over-month, according to the BLS.
“But believe it or not, this is also an improvement because the month before, we saw a 15% monster increase,” he said. “And also, more recently, some of the numbers that have come out from the USDA [U.S. Department of Agriculture] on wholesale egg prices have shown an improvement because there’s been fewer outbreaks of bird flu and less demand.”
The business reporter also said there’s a “big asterisk” with the report because it does not fully account for Trump’s tariffs.
“This is the February inflation report, so yes, it does include the initial 10% tariffs on China, but not the 20% tariffs on China, not the limited 25% tariffs on Canada and Mexico, not the auto tariffs, the steel and aluminum tariffs that just went into effect, the reciprocal tariffs,” he said. “So the question is: Will all of those tariffs short-circuit the improvement in inflation and perhaps make prices go even higher?”
Inflation reached a peak of 9% in June 2022 under Biden, up from 1.4% in January 2021 when he was inaugurated. Trump frequently discussed the importance of enhancing the economy during his 2024 campaign against former Vice President Kamala Harris.
Trump implemented 25% tariffs on Mexico and Canada a long with a 20% tariff on China March 4 due to the nations’ roles in allowing illegal immigrants and fentanyl to enter the United States. However, the president subsequently announced that he would delay tariffs on Mexican imports for roughly a month in a Thursday Truth Social post.
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