Federal Data Confirms White House Claim: Core Inflation Falls to Lowest Level in Nearly Five Years

Washington, D.C.; December 20th, 2025

The White House on December 18th released a statement titled “Trump Delivers: Core Inflation Hits Lowest Level in Nearly Five Years,” pointing to new economic data that the administration says reflects sustained progress in easing price pressures faced by American households. The update, issued directly through the White House news desk, highlights a key economic indicator closely watched by policymakers, economists, and consumers alike.

According to the White House, core inflation, which excludes the often volatile prices of food and energy, has now fallen to its lowest level in nearly five years. This measure is widely used to assess underlying inflation trends because it strips out short-term price fluctuations that can obscure longer-term patterns. Seeing core inflation decline is presented by the administration as evidence that broader price stability is returning after several years of elevated inflation.

The White House attributes the decline to a combination of policy actions taken since the beginning of the Trump administration’s current term. These include aggressive deregulation efforts, expanded domestic energy production, and a focus on restoring supply chain efficiency. By reducing regulatory burdens and increasing domestic output, the administration argues that businesses have been better positioned to lower costs, which are then passed on to consumers.

Energy policy features prominently in the administration’s explanation. The White House states that record levels of domestic oil and natural gas production have helped ease transportation and manufacturing costs across the economy. Lower energy costs, the administration contends, reduce expenses for everything from food distribution to industrial production, creating downward pressure on prices beyond the energy sector itself.

The statement also emphasizes the administration’s approach to monetary and fiscal coordination. While the Federal Reserve operates independently, the White House notes that fiscal restraint and efforts to rein in excessive government spending have contributed to easing inflationary pressures. By avoiding what it describes as “runaway deficit spending,” the administration claims it has supported a more stable economic environment.

In addition to macroeconomic policy, the White House points to labor market trends as a contributing factor. With job growth concentrated in the private sector and real wages beginning to rise, the administration argues that productivity gains have helped offset inflationary risks. Higher productivity, according to the statement, allows businesses to increase output without raising prices, reinforcing broader price stability.

The White House contrasts the current inflation data with conditions inherited from the previous administration, describing a period marked by high inflation, rising interest rates, and declining purchasing power. It asserts that sustained policy changes were required to reverse those trends and that the current core inflation figures demonstrate measurable progress rather than short-term fluctuation.

While acknowledging that many Americans still feel the effects of higher prices accumulated over previous years, the administration frames the latest data as a turning point rather than a final outcome. The White House notes that inflation reduction is a gradual process and emphasizes that continued vigilance is necessary to maintain downward momentum without stalling economic growth.

The statement also underscores the broader goal of restoring confidence in household budgeting and long-term financial planning. Lower and more stable inflation, the administration argues, helps families better predict expenses, supports savings, and reduces pressure on interest rates. These factors, taken together, are presented as foundational to long-term economic health rather than short-term political gains.

The White House concludes by stating that the drop in core inflation reflects what it calls “policy discipline and economic realism,” asserting that sustained attention to energy independence, regulatory reform, and fiscal responsibility will remain central to the administration’s economic strategy. While future data will ultimately determine the durability of the trend, the administration positions the latest inflation figures as a significant milestone in its broader effort to stabilize prices and strengthen the U.S. economy.

Federal economic data released by the U.S. Bureau of Labor Statistics confirm the White House’s statement that core inflation has declined to its lowest level in nearly five years, anchoring the administration’s claim in first-hand government statistics rather than interpretation or projection.

According to the most recent Consumer Price Index release, core inflation, measured as the CPI for all urban consumers excluding food and energy, stands at approximately 2.6% on a year-over-year basis. This figure reflects a sustained downward trend that began after inflation peaked in 2022 and remained elevated through much of 2023 and 2024.

Historical CPI data show that core inflation last hovered at comparable levels in early 2021, prior to the inflation surge that followed pandemic-era disruptions, supply chain breakdowns, and expanded fiscal spending. Since that time, core inflation readings remained consistently higher until the steady deceleration observed across 2025 brought the metric back into the mid-2% range.

Because core inflation strips out short-term volatility in food and energy prices, it is widely regarded by economists as a more reliable indicator of underlying price pressures in the economy. The current reading therefore signals a meaningful easing in broad inflationary trends rather than a temporary fluctuation driven by isolated price changes.

While many consumers continue to feel the cumulative effects of price increases from previous years, the federal data substantiate the White House’s characterization of recent inflation performance. The description of core inflation reaching its lowest level in nearly five years aligns with the Bureau of Labor Statistics’ long-term inflation series and reflects a measurable shift in the economic environment.

Sources

Primary First-Hand Sources

• U.S. BUREAU OF LABOR STATISTICS, Consumer Price Index for All Urban Consumers, Core CPI (All Items Less Food and Energy), latest release.
• THE WHITE HOUSE, News Desk Statement: “Trump Delivers: Core Inflation Hits Lowest Level in Nearly Five Years,” released December 18th, 2025.