U.S. inflation cooled more than expected in March, giving President Donald Trump a significant political and economic victory just months into his second term.

The latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics showed that prices dropped by 0.1% month-over-month and rose only 2.4% over the past year—marking the smallest annual increase since February 2021.

The surprise drop in prices comes despite widespread warnings that Trump’s aggressive tariff strategy would reignite inflation.

Energy prices led the decline, falling 2.4% overall in March, including a 6.3% drop in gasoline prices.

The fall in monthly CPI is the first since May 2020 and only the second since inflation began surging under President Biden.

Core inflation, which excludes food and energy, rose just 0.1%—far below the 0.3% that economists had forecast. That marks the lowest increase in core prices since Trump’s first term, reinforcing the president’s message that his policies are restoring affordability for American families.

“Promises made. Promises kept,” White House Press Secretary Karoline Leavitt posted on X, highlighting the impact of Trump’s recent executive actions.

In January, the president signed a memorandum calling for “emergency price relief,” followed by an energy-focused executive order on January 20 aimed at boosting domestic supply and lowering costs.

The news also followed Trump’s announcement this week of a 90-day pause on certain tariffs—moves that some economists had predicted would drive prices higher.

Instead, the CPI numbers undercut those forecasts and added credibility to Trump’s claims that his America-first agenda can bring real price relief.

Still, not all price categories moved in the right direction. Food prices continued to rise, with grocery prices up 0.5% and restaurant prices climbing 0.4%. Egg prices in particular saw another sharp increase.

Meanwhile, consumers benefitted from falling prices on used cars and trucks, airline fares, motor vehicle insurance, and smartphones, which dropped by 1.1%. Clothing prices rose slightly by 0.4%, while new car prices rose 0.1% and remained flat compared to last year.

Despite the positive trend, Trump still faces skepticism over his economic leadership. A March NBC News poll showed that 54% of voters disapproved of his handling of the economy so far, and 72% feared that his tariffs could hurt the U.S. in the short term. However, with inflation showing real signs of retreat, the latest data could mark a turning point in public perception.

For now, the numbers speak for themselves: prices are falling, inflation is cooling, and Trump’s economic team is touting the results as proof that their strategy is working.