U.S. March Consumer Prices Decline Amid Inflation Concerns

According to Odaily, consumer prices in the United States unexpectedly fell in March, despite U.S. President Donald Trump's tariff reductions on other countries, which tend to increase inflation risks. The U.S. Department of Labor's Bureau of Labor Statistics reported on Thursday that the Consumer Price Index (CPI) decreased by 0.1% in March, following a 0.2% rise in February. This decline may reflect a drop in energy costs and the fading impact of price increases earlier in the year. Excluding the volatile food and energy sectors, the core CPI rose by 0.1% in March, compared to a 0.2% increase in February. Year-over-year, the core CPI increased by 2.8% in March, down from a 3.1% rise in February. The March data likely reflects only a small portion of the initial wave of Trump's import tariffs. Capital Economics estimates that the inflation rate will peak at around 4%, double the Federal Reserve's 2% target. Minutes from the Federal Reserve's March 18-19 meeting, released on Wednesday, indicate that policymakers almost unanimously agree that the economy faces the dual risks of rising inflation and slowing growth.