White House: Inflation Report ‘Very, Very Positive’ and We’re ‘on the Right Trajectory’ on Inflation, Even with Core Rising

On Wednesday’s broadcast of CNBC’s “Squawk on the Street,” White House National Economic Council Deputy Director Bharat Ramamurti stated that the March CPI report is “very, very positive” and that we’re moving in the right direction on inflation.

Ramamurti said, “I think it’s a very, very positive report, as you highlighted just now, inflation at the headline level continues to come down, nine straight months now of declining inflation. One of the most salient prices for families, for consumers — grocery prices — actually went down over the last month. And I think if you take a step back and look at the story of the last nine months, it’s very simple. Jobs are going up, wages are going up, and inflation is coming down, and that’s exactly the kind of transition to steady and stable growth that the president said he wanted to see last year.”

Co-host Sara Eisen then asked, “It’s progress, but, inflation is still pretty high and sticky in some places. And if you look at the core, which is what the Fed is targeting, taking out food and energy, up 0.4% from the last month. It’s not nearly where it needs to be, is it?”

Ramamurti answered, “Look, there’s obviously more work to do. The question is, are we on the right trajectory? The president, from the beginning, has said, this is not going to happen overnight, we need to make sure that we’re moving in the right direction and I think, quite clearly, we are, over the last several months. Our job here at the White House is to make sure that we use all the tools that we have to help the Fed in its effort to get back down to its inflation target. One of the main things we’ve been focused on is reducing costs for families, particularly prescription drug costs. Already, this year, we’ve seen a cap of $35 a month on insulin prices go into effect. That’s saving families hundreds of dollars. We’re seeing a cap on the total out-of-pocket that seniors spend each year on Medicare of $2,000, which is a huge cost savings for many seniors who have to pay for prescription drugs. So, we’re doing what we can to help the Fed in its efforts.”

The March CPI report showed prices rising 0.1% from the prior month with core inflation going up 0.4% from the previous month and annual inflation at 5%, down from a 6% annual rate last month but with annual core inflation rising from 5.5% the prior month to 5.6%.

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