JUST IN: Karoline Leavitt Hails CPI Report: Inflation Beats Expectations, Prices Fall Under Donald Trump

Photo credit: Gage Skidmore/CC BY-SA 2.0, via Flickr

Inflation Beats Market Expectations Again as Prices Fall for Everyday Goods, White House Says

Washington, D.C. — August 14, 2025 — The White House is touting fresh economic data as proof that President Donald Trump’s “America First” economic policies are delivering results for American families and businesses.

White House Press Secretary Karoline Leavitt said Thursday that the latest Consumer Price Index (CPI) report shows inflation once again beat market expectations and remains low and stable.

“Today’s CPI report revealed that inflation beat market expectations once again and remains stable, underscoring President Trump’s commitment to lower costs for American families and businesses,” Leavitt said. “The Panicans continue to be proven wrong by the data – President Trump’s tariffs are raking in billions of dollars, small business optimism is at a five-month high, and real wages are rising. The American people have rightfully put their trust in President Trump’s America First agenda that is Making America Wealthy Again.”

Key Economic Highlights from the July CPI Report

Inflation: Tracking at 1.9% since President Trump took office — low and stable.
Wages: Real average weekly earnings increased in July; real wages are up 1.3% over last year, rising every month since Trump took office.
Work Hours: Americans are working more hours, with wage growth outpacing inflation.
Back-to-School Boost: Prices for everyday goods continue to fall ahead of the school shopping season.

Shelter inflation, historically the largest contributor to CPI, is now at its lowest level since October 2021.

Small Business Optimism Surges

The White House also pointed to a Bloomberg report showing small business optimism at a five-month high. Owners are increasingly upbeat about the economy and expanding operations.

With steady inflation, rising real wages, and declining prices for essentials, administration officials say the economic momentum is proof of the success of Trump’s “Making America Wealthy Again” strategy.

FAQs: July CPI Report and White House Economic Statement

Q1. What did the latest CPI report reveal?
The July CPI report showed that inflation beat market expectations once again and remains stable at 1.9%, with prices for many everyday goods continuing to decline.

Q2. What is the current U.S. inflation rate under President Trump?
Since President Trump took office, inflation has been tracking at 1.9%, which is considered low and stable.

Q3. How are wages performing compared to inflation?
Real wages are up 1.3% over the past year and have increased every month since President Trump took office, outpacing inflation and boosting purchasing power for American workers.

Q4. Which goods saw the largest price drops in July?
Major price declines include gasoline (-10%), eggs (-20% since Trump took office), smartphones (-14.7%), hotels (-4.8%), peanut butter (-3.3%), and frozen vegetables (-2.2%).

Q5. How is the small business sector responding to the economy?
Small business optimism has reached a five-month high, with more owners planning expansions and expressing confidence in the economic outlook.

Q6. What role do tariffs play in the current economic situation?
According to the White House, President Trump’s tariffs are bringing in billions of dollars in revenue and supporting domestic economic growth while keeping inflation in check.

Q7. How does this CPI report affect American families?
Lower inflation, rising wages, and falling prices for essential goods mean families have more purchasing power and can better manage household budgets.

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