WASHINGTON–New consumer price index (CPI) data show inflation continues to cool, but most analysts are saying the caveat remains the status and effects of President Trump’s tariffs.
The Bureau of Labor Statistics reported that CPI fell a seasonally adjusted 0.1% in March, putting the 12-month inflation rate at 2.4%, down from 2.8% in February.
Excluding food and energy, what is often referred to as core inflation showed a 2.8% annual rate, up 0.1% for the month. That was the lowest rate for core inflation since March 2021.
“The March inflation report indicated solid progress toward the Federal Reserve’s inflation target. However, this positive development is overshadowed by the implementation of new tariff measures, which are expected to exert upward pressure on prices and hinder economic growth,” Dawit Kebede, senior economist with America’s Credit Unions, said in a statement. “Prices declined in March on a monthly basis, while year-over-year inflation stood at 2.4%. Core inflation, which excludes volatile food and energy components, fell below 3% for the first time in four years. Both headline and core inflation eased more than anticipated.”
Helping keep a lid on inflation was energy prices, which have declined. Food prices were up 0.4%, however, and eggs—which have become something of a measuring stick for food prices—were up 5.9% and 60.4% from one year ago.
