Kevin Hassett, the Director of the National Economic Council, commended the latest Consumer Price Index (CPI) report, which revealed that inflation rose less than anticipated. Speaking on "Varney & Co.," Hassett described the report as an "absolute blockbuster," noting that it exceeded the forecasts of 61 analysts surveyed by Bloomberg.
The CPI data indicated that, from September to November, prices increased by 0.2%, while the year-over-year increase was recorded at 2.7%. Both figures were lower than economists' expectations, which had predicted a 0.3% monthly rise and a 3.1% annual increase. Core inflation, which excludes volatile items like food and energy, rose by 0.3% from the previous month and 2.6% on a yearly basis, aligning with analyst expectations.
Hassett emphasized the near-term economic outlook, highlighting that core inflation over the past three months has averaged 1.6%, which he attributed to the administration's efforts to enhance aggregate supply. He noted that the current growth rates and inflation levels resemble those seen during the previous Trump administration, when the economy experienced growth around 3% alongside inflation rates near 1%.
While acknowledging the positive aspects of the CPI report, Hassett refrained from declaring complete victory over inflation, suggesting that ongoing challenges remain. The report also pointed out that consumers are still facing price increases, particularly in food, which has risen by 2.6% compared to last year, along with higher costs in energy, transportation, and housing sectors.