Consumer Price Index Rises 2.4% in March, Cooling More Than Expected
The U.S. consumer price index (CPI) increased 2.4% year-over-year in March, according to data released Thursday by the Bureau of Labor Statistics. This marks a modest slowdown from February’s 2.8% and falls below economists’ forecast of a 2.6% annual increase. On a monthly basis, headline inflation rose just 0.1% in March, in line with expectations and down from a 0.2% rise in February.
Core CPI, which excludes food and energy prices, also showed signs of cooling. It rose only 0.1% from the previous month—underperforming the predicted 0.3% increase and slowing from a 0.2% pace in February. On an annual basis, core CPI rose 2.8%, its lowest level since 2021, compared to a 3.0% forecast and 3.1% in February.
While March’s data suggests inflation is easing in early 2025, economists are increasingly wary of the potential impact of newly implemented tariffs and growing policy uncertainty. These factors were not yet reflected in the March figures, making it difficult for investors, policymakers, and businesses to draw definitive conclusions.
Market reactions are now focused not just on the cooler inflation figures, but also on how broader trade policies and potential Federal Reserve measures could influence price stability going forward. Although the current data points to moderation, the outlook remains clouded by geopolitical and economic risks still unfolding.
