Inflation fell to 2.4% in March – Washington Examiner
In March, inflation dropped to 2.4% year-over-year, marking a decrease of four-tenths of a percentage point, as reported by the Bureau of Labor Statistics. This decline was anticipated by forecasters who expected a drop of three-tenths of a percentage point. This news is especially favorable for President Donald Trump, who is together engaging in trade wars that could otherwise increase prices. On a monthly basis, inflation decreased by 0.1%, and core CPI inflation, excluding food and energy, fell to 2.8%.The Federal Reserve is closely monitoring these inflation figures to determine future interest rate adjustments.Despite last year’s notable rate cuts, the Fed has held rates steady in recent meetings due to persistent inflation. Economic growth appears to be slowing, and uncertainties surrounding Trump’s tariff policies may lead to greater inflationary pressure and a potential recession. federal Chairman jerome Powell noted that the newly implemented tariffs are larger than expected, suggesting significant economic consequences.
Inflation fell to 2.4% in March
Inflation dropped to four-tenths of a percentage point to 2.4% for the year ending in March, the Bureau of Labor Statistics reported Thursday morning, a reassuring datapoint amid uncertainty about economic policy.
Forecasters expected a drop in the inflation rate of three-tenths of a percentage point, after it fell the month before. The decrease is good news for President Donald Trump, who is carrying out simultaneous trade wars that threaten to put upward pressure on prices.
On a month-to-month basis, inflation dropped 0.1%.
This CPI report was hotly anticipated, given that inflation has been unexpectedly sticky over the past several months. Trump vowed to lower inflation on the campaign trail and entered office, in part, because of that commitment.
Core CPI inflation, which strips out volatile food and energy prices, fell to 2.8% for the year ending in March.
Officials at the Federal are watching the inflation numbers closely to determine whether to lower interest rates further to spur more economic activity or to forgo further rate cuts to try to tamp down inflation.
The Fed cut rates by a whole percentage point last year. As high inflation persisted, though, the central bank opted to hold interest rates steady at its January and March meetings.
The Fed’s goal is 2% annual inflation.
Trump has plowed ahead with tariff plans recently, which has caused economic uncertainty and led to major losses in stock markets.
Stocks cratered after Trump announced 10% tariffs on most countries and much higher levies on others, but posted record one-day gains on Wednesday when he announced a rollback of some of those.
There are also indications of a slowdown in economic growth and economists have said the odds of a recession are rising.
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Fed Chairman Jerome Powell, speaking at a business conference in Virginia, said that the new tariffs are larger than the Fed anticipated.
“While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected,” Powell said. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
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