The naysayers told us President Trump was going to deliver runaway inflation, but the latest data show exactly the opposite. Not only did inflation fall for consumers in the first half of the year, but it completely evaporated for businesses. And as Mr. Trump continues delivering on his energy agenda, there should be more relief coming for Americans.
That energy agenda is a key element in bringing inflation to heel because America is still dealing with the inflationary fallout from the misguided policies of the previous administration. If you reduce energy prices, however, then that puts downward pressure on prices everywhere, since energy is used in all products and services.
Mr. Trump sent a clear signal to energy producers, even before his inauguration, that he would end the Biden-era war on natural gas, oil, coal, and nuclear. Suppliers’ confidence rose, and they opened the taps, helping reduce energy prices. That, in turn, pushed down inflation.
In June, however, energy prices rose, partly because of geopolitical fears and disruptions. The consumer price index (CPI) increased 2.7 percent over the 12 months ending in June, versus a rate of 2.4 percent for May. The increase was much more muted for the core CPI (excludes the volatile food and energy categories), which rose from 2.8 percent to 2.9 percent.
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