The unexpected decline in U.S. CPI in March reflects the gradual fading of the impact of price increases at the beginning of the year

Planet Daily News: U.S. consumer prices unexpectedly declined in March, despite Trump's reduction of tariffs on other countries, with inflation risks tending to rise. The U.S. Bureau of Labor Statistics announced on Thursday that the March CPI month-on-month decreased by 0.1%, compared to a 0.2% increase in February. This decline may reflect lower energy costs and the gradual fading of price increases at the beginning of the year. Excluding the volatile food and energy sectors, the core CPI increased by 0.1% month-on-month in March, compared to a 0.2% increase in February. Year-on-year, the core CPI rose by 2.8% in March, compared to a 3.1% increase in February. The March data may only reflect a small part of Trump's first wave of import tariffs. Capital Economics estimates that the inflation rate will peak around 4%, which is twice the Federal Reserve's 2% target. The minutes of the Federal Reserve's March 18-19 meeting, published on Wednesday, show that policymakers almost unanimously believe the economy faces risks of rising inflation and slowing growth. (Jinshi)