Bringing Prices Down: How’s It Going?

As promised by Donald Trump?

“We’re going to have prices down- I think you’re going to see some pretty drastic price reductions.”

Associated Press, Trump holds a press conference at Mar-a-LagoYouTube (January 7, 2025).

And here’s the data we have.

Figure 1: CPI (blue), Everyday Price Index (tan), and CPI-limited service restaurants (green), all in logs, 2025M01=0. CPI-limited services restaurants seasonally adjusted by author using X-13 in logs. Source: BLS, American Institute for Economic Research, and author’s calculations.

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