Monthly inflation readings from the Labor Department announced this morning put March’s rate at 2.4%, slightly lower than the consensus expectation of a 2.6% increase and down from 2.8% in February. Prices fell 0.1% from a month earlier.
The slight drop was partially attributed to a fall in gasoline prices. Hotel prices also declined, suggesting a weakening in demand for travel. However, prices picked up for food, medical care, clothing and new vehicles.
Core inflation, which excludes food and energy, ran at a 2.8% annual rate, the lowest since March 2021, according to reporting by CNBC.
Overall, the inflation numbers are considered minor economic news in the face of the uncertainty imposed by ongoing tariff policies. As reported in The Wall Street Journal this morning, U.S. Bank chief economist Beth Ann Bovino said: “It’s good news for the Fed, but the data seems stale.”
