In March, the Consumer Price Index (CPI) recorded its first month-to-month decline since President Donald Trump’s first term in the White House, according to data released Thursday by the U.S. Bureau of Labor Statistics (BLS).
The seasonally adjusted CPI for all urban consumers fell 0.1 percent in March, compared to February, when it rose 0.2 percent from the previous month.
March’s CPI decline was the first since May of 2020, when it fell for a third consecutive month.
The Consumer Price Index (CPI) rose nearly three times faster under Pres. Joe Biden than under the first Trump Administration. From January 2021 to January 2025, consumer prices increased 21.5%. In contrast, from January 2017 to January 2021, the CPI rose 7.8%.
On a monthly basis, inflation averaged 1.9% under Trump (Feb. 2017-Jan. 2021) and 5.0% under Biden (Feb. 2021-Jan. 2025).
Compared to March of last year, the CPI increased 2.4% before seasonal adjustment – an easing from February’s 2.8 percent 12-month increase (Feb. 2024 to Feb. 2025).
A 2.4 percent monthly decrease in the overall cost of energy was fueled by a 6.3 percent drop in the cost of gasoline. Compared to year-ago, the price of energy is down 3.3 percent. However, the cost of food rose 0.4 percent from February and 3.0 percent from 12 months earlier.
The prescription drug index fell 2.0 percent in March – the “largest monthly decline on record,” according a White House press statement titled “America Is Back – But Inflation Is Not” released Friday.
The so-called “core” CPI, which excludes the volatile food and energy components, rose 0.1 percent, half February’s 0.2 percent month-to-month rate of increase. Airline fares, motor vehicle insurance, used cars and trucks, and recreation were among the major price indexes that decreased in March.
Core CPI rose 2.8 percent over the last 12 months, the smallest 12-month increase since March 2021.
Reacting to Thursday’s BLS report, Job Creators Network CEO Alfredo Ortiz praised March’s inflation news, but said more work needs to be done – especially the extension of the first Trump Administration’s tax cuts, which are set to expire at the end of the year:
“Now it's time for the Federal Reserve to recognize this new inflation environment and immediately reduce interest rates. Doing so will increase small business access to credit and boost the economy for ordinary Americans still suffering from bad Democratic policies.
“Meanwhile, Congress must give small businesses certainty by working as fast as possible to extend and expand the Tax Cuts and Jobs Act.”