US inflation eased more than expected in March, with the Consumer Price Index (CPI) falling 0.1% due to plummeting energy prices. The core measure, which excludes food and energy costs, rose just 0.1%, a significant drop from February’s 2.8% increase.
The decline in inflation is seen as a relief, as it follows warnings that progress had stalled. However, concerns remain about the impact of President Trump’s trade policies on consumer prices. The new tariffs, including a 10% levy across-the-board and 125% on imports from China, could lead to higher price increases.
The data has been welcomed by the Federal Reserve, but officials are likely to remain cautious. Despite the temporary drop in inflation, anecdotal evidence suggests shaky economic growth, and there is a risk of a tariff-driven increase in prices in the coming months.
Source: https://www.axios.com/2025/04/10/inflation-consumer-price-index-trump-tariffs