March Inflation Rate Cools Far More Than Expected, Raises Hopes For Near-Term Fed Rate Cuts

Price pressures eased more than expected in March, offering significant relief to concerns over the front-loading effects of trade tariffs and further fueling investor risk-on sentiment following President Donald Trump‘s surprising 90-day tariff pause on Wednesday.

The annual inflation rate fell to 2.4% in March, the lowest level in six months, down from 2.8% in February, according to data released Thursday by the Bureau of Labor Statistics.

The figure was below economist expectations of 2.6%. On a monthly basis, the Consumer Price Index contracted by 0.1%, slowing from the 0.2% increase seen the previous month and below expectations of a 0.1% increase.

It marks the lowest monthly inflation reading since May 2020.

A 6.3% drop in gasoline prices was more than offset by increases in electricity and natural gas indexes. In contrast, the food index rose 0.4% in March, driven by a ...

https://www.benzinga.com/news/econ-s/25/04/44733390/march-inflation-rate-cools-far-more-than-expected-raises-hopes-for-near-term-fed-rate-cuts