Inflation has cooled more than expected in March despite the warnings of President Donald Trump that he imposed more prices.
The consumer price index increased by 2.4% compared to one year earlier compared to the 2.5% forecast. It is the second consecutive month of cooling And reflects prices before the last climbing of Trump’s trade war.
The IPC dropped 0.1% during the month after the 0.2% increase in February and other monthly increases before it. It had to increase 0.1%.
The basic ICC, which excludes the volatile prices of food and energy, has slowed more than expected. It increased by 2.8% compared to a 3% forecast and a higher rate than the previous 3.1%. The Bureau of Labor Statistics report indicated that it was the smallest increase from one year to the next since March 2021.
Economists do not think that the slowdown will last, especially after the new series of Trump prices in April.
“Like the February CPI published last month, any improvement in inflation will be considered short -lived,” said Greg McBride, Bankrate financial analyst.
The new data, as well as other inflation and job reports to come, will help the federal reserve in May what to do with interest rates. CME Fedwatch, which indicates the chances of variations based on the movements of the interest rate traders market, shows more than 80% chance that the federal reserve will once again hold stable rates in May.
The president of the federal reserve, Jerome Powell, said at the March press conference after the members of the Federal Open Market Committee decided to hold the stable interest rates that a “good part” of the unexpected inflation of the inflation of goods in the first two months of 2025 was due to prices, partly consumers and companies that choose to get their supplies before.
An increasing choir of experts says that Trump’s prices will lead to an economic slowdown and perhaps even a recession. The Trump administration has rather argued that prices are necessary to balance trade deficits and will benefit in the United States in the long term after short-term pain.
Meanwhile, the feelings of the University of Michigan fell again in March. The markets tilted wildly in last week as Trump introduces it, then partly remote prices.
We do not know how companies will decide to transmit costs on consumers, because the last 10% tariffs on goods in most countries and 125% on imports from China recently entered into force.
“We are likely to see the inflationary results, not only on imported products, but on internal prices, as the input costs increase and increase interior products,” said Jamie Dimon, Managing Director of JPMorgan Chase, in his letter to shareholders, but economic growth will slow down.
It is a story in development. Please check the updates.
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