Inflation falls in March as annual core consumer prices rise at slowest rate in four years

March's Consumer Price Index (CPI) study showed ostentation pressures eased considerably past month, with yearly halfway prices rising astatine their slowest gait since March 2021. But it could beryllium the past clip investors spot moderating terms maturation arsenic President Trump's tariff spree threatens to upend caller easing trends.

The latest information from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) accrued 2.4% implicit the anterior twelvemonth successful March, a slowdown from February's 2.8% yearly summation and a bushed comparison to economist expectations of a 2.5% yearly increase.

On a month-over-month basis, prices declined 0.1% — the archetypal clip monthly CPI prices person fallen since May 2020. This was besides beneath the 0.2% summation seen successful February and a bushed compared to economists' estimates of a 0.1% monthly uptick.

On a "core" basis, which strips retired the much volatile costs of nutrient and gas, prices successful March climbed 0.1% implicit the anterior month, cooler than February's 0.2% monthly summation and up of economist expectations of a 0.3% increase.

Over the past year, halfway prices roseate 2.8%, a deceleration from the 3.1% yearly halfway terms increases seen successful the prior-month play and the slowest yearly emergence successful 4 years.

Overall, March delivered the 2nd consecutive monthly diminution successful header and halfway CPI inflation.

The study greets investors little than 24 hours aft markets rallied connected the latest commercialized development: a 90-day intermission connected reciprocal tariffs for astir countries and a simultaneous summation of US levies connected Chinese imports.

Although Trump has paused reciprocal tariffs (for now), the 10% baseline duties that went into effect past play for astir countries remain. Mexico and Canada inactive look a abstracted acceptable of duties related to fentanyl, portion abstracted industry-specific tariffs connected steel, aluminum, and autos stay unchanged.

The president besides announced helium would unilaterally rise the tariff complaint connected China to 125%, citing "the deficiency of respect that China has shown."

Economists proceed to caution that existent tariffs volition apt pb to faster terms growth. That, coupled with rising fears of a self-inflicted recession, has kept the Fed successful "wait-and-see" mode erstwhile it comes to involvement rates.

"This could easy beryllium the past truly bully CPI time for a while," Claudia Sahm, erstwhile Federal Reserve Board economist and existent main economist astatine Century Advisors, told Yahoo Finance pursuing the data's release. "The tariffs that person gone into effect [but] it's going to instrumentality clip for it to amusement up successful the data."