Consumer price inflation decreased more than expected in March when President Donald Trump prepared to launch TARCH rates against US business partners, the office of labor statistics reported Thursday.
The consumer price index, a wide measure of the costs of goods and services throughout the economy of the United States, fell 0.1% adjusted seasonally in March, which puts the inflation rate of 12 months by 2.4%, below 2.8% in February.
Excluding food and energy, the so -called nucleus inflation was executed at an annual rate of 2.8%, which increased 0.1% for the month. That was the lowest rate for nucleus inflation since March 2021.
Wall Street had been looking for a main inflation of 2.6% and 3% nucleus, according to Dow Jones consensus.
The energy prices of the fall helped maintain meek inflation, since a 6.3% drop in gasoline prices helped boost a decrease of 2.4% wider in the energy index. Food prices rose 0.4% in the month. Egg prices increased another 5.9% and rose 60.4% for a year.
Moreoover, the prices of the shelter, among the most stubborn inflation components, increased only 0.2% in March and increased 4% by a base of 12 months, the smallest gain since November 2021. The prices of the used vehicles were out of 0.7%, while Ahicle Cofeff hoped to reach the car industry.
Airline rates decreased by 5.3% in March and motorized vehicle insurance fell 0.8% and prescription medications fell 2%.
Securities market futures indicated a very low open on Wall Street after launch, while treasure yields were also negative.
The report occurs a day after the impressive Trump investment of parts of its tariff plans, since it announced a delay in some of the most aggressive duties established against nations boxes. Instead, Trump let a 10% general tax in all imports announced last week and established a 90 -day window that the White House will negotiate the highest rates.
While Trump campaigned to tear down inflation, progress had a slow leg to start 2025.
President Neverberness has asked the Federal Reserve to reduce interest rates. The officials of the Central Bank have expressed a reluctance to move with such political uncertainty in the air, and market prices indicate that the Fed will wait until June before reducing rates again.
The nature of tariffs has led most economists to expect a significant increase in inflation, thinking that it is less clear that Trump has opened the negotiation window.
“The liberation of the softer IPC of the current expected feels back given the great changes in the sea of commercial policy in recent days,” said Kay Haigh, global co-co-founded for fixed income and liquuidity solutions in Goldman Sachs Asset Management. “In the future, the Fed is likely that in front of difficult compensation, since the price increases driven by the rate begin to feed to inflation data and the activity remains soft.”
Future market prices after the CPI report indicated few changes in interest rates market expectations, with merchants’ prices in three or four cuts for the end of the year.
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