In a recent video, President Donald Trump discussed the US inflation rate, claiming it had reached a “beautiful number” of 2% under the Biden administration, and might even fall to 1%. He described the current inflation situation as “almost perfect”.
Key points from the video:
- Trump stated that the US experienced “the worst inflation in the history of our country” under the Biden administration.
- He claimed the inflation rate is now at 2% and could drop to 1%.
- He believes 2% inflation is better than 0%.
- He considers the current inflation situation “almost perfect”.
Is Trump’s assessment accurate?
While the video claims the inflation rate is at 2%, recent data indicates a slightly higher figure. According to the Bureau of Labor Statistics, the annual inflation rate in the US was 2.4% in May 2025. Consumer Price Index Summary – 2025 M05 Results This is a decrease from previous highs, but still slightly above the 2% mentioned in the video. Core inflation, which excludes volatile food and energy prices, stood at 2.8% in May 2025. United States Core Inflation Rates (1957-2025)
Economists generally consider a 2% inflation rate to be a reasonable target. The Federal Reserve, like many central banks, aims for 2% inflation to promote price stability and economic growth. Why does the Federal Reserve aim for inflation of 2 percent over the longer run? This level is seen as low enough to avoid deflation (falling prices, which can harm the economy) but high enough to provide a buffer against economic shocks. Some economists argue for a slightly higher target, suggesting that it could provide more flexibility during recessions. It’s time to rethink the Fed’s 2% inflation target – and the system behind it
In conclusion, while the video’s claim of a precise 2% inflation rate is not entirely accurate based on the latest data, the current inflation rate is close to the level considered desirable by many economists.
