U.S. consumer price inflation unexpectedly fell in March, dropping to 2.4% year-on-year from 2.8% in February. The decline, exceeding market expectations, was driven by lower energy prices, particularly gasoline. Core inflation, excluding food and energy, also decreased to 2.8%, its lowest since March 2021. While food prices increased, shelter and used vehicle prices showed moderation. This slowdown comes as President Trump prepared to implement tariffs.

Prepared by Christopher Adams and reviewed by editorial team.