Despite hysteria and gloomy predictions from those on the left, so far, it’s difficult to find evidence of runaway inflation. The latest numbers show inflation rose only 2.3% in April. That is much lower than analysts had predicted. Even mainstream media had to admit it was the lowest rate of inflation since 2021:
The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year-on-year in April, the Bureau of Labor Statistics reported Tuesday, down from 2.4% in March.
How is this possible? After all, vaunted economic expert, Senator Elizabeth Warren (D-MA), warned us “President Trump’s erratic tariff threats are a disaster for our country. His actions are the root cause of the looming economic crisis, driving up prices for families, crashing markets, and threatening a deep and painful recession.”
Senator Minority Leader, Chuck Schumer (D-New York), had dire warnings as well, stating, “Instead of fixing inflation, which he promised to do, Donald Trump unleashed a wave of tariffs that will make inflation much worse… Chairman Powell said, ‘it would increase inflation and slow growth.”
The explanation for this record low inflation number might be found in some of the counter-balancing moves made by the Trump administration to keep prices low while he attempts to re-order the world economy; moves that have largely been ignored by mainstream reporters. They include:
- Lower energy Prices. Nothing seems to keep overall prices at bay better than lower energy costs. Lower costs for energy ripple through the economy. If it costs less to send goods, products and services to market, business and industry are under less pressure to raise prices. That helps keep inflation low. Conservative Economic Stephen More wrote “Energy is the master resource of our economy; it’s the lifeblood of growth and prosperity. When you unleash American energy production, you drive down costs for families, farmers, truckers, and manufacturers, and that’s the most effective way to crush inflation and boost jobs.”
- Already President Trump had already secured $10T in promises from companies and foreign allies that they will invest in American manufacturing. During his visit to the Kingdom of Saudi Arabia, the President collected another trillion. In the short-term this juices the economy with construction activity. Other jobs will appear in time.
- Trump is working to make government smaller and to reduce government regulations. It is largely unreported, but backed-up by serious economic data which show slashing regulations save corporations and businesses money. Those savings can be passed on to consumers. Take this example from Reuters from earlier this month: “The US Department of Energy on Monday proposed to eliminate or change more than 40 regulations and programs to align them with President Donald Trump’s efforts to relax federal rules and gut diversity initiatives.The moves will save US taxpayers $11 billion, the agency said in a statement, calling it the first step in its largest-ever deregulatory effort.”
There is more on the horizon. ThePresident has vowed to cut the cost of prescription drugs by up to 80%. And though there is some uncertainty about the so-called “big beautiful bill” wending its way through Congress, it could well extend tax cuts. The record is replete with evidence that tax cuts generally juice the economy. According to House Ways and Means Chairman. Rep. Jason Smith (R-MO):
“Extending Trump’s tax cuts means a stronger economy, saved jobs, and higher wages according to this latest economic study. We will save over 6 million full-time jobs and raise take-home pay for working families by up to $5,000. Congress has an opportunity to lock in the most pro-worker, pro-growth tax policy in a generation that will keep businesses hiring and help rural Americans thrive. We cannot afford to wait until the last minute. Americans need certainty today that their tax rates won’t go up next year.”
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Brian Wilson is Managing Editor of State News Foundation
