Consumer prices inflation was more than expected in March as president Donald Trump Prepared to launch prices against American trade partners, the Bureau of Labor Statistics reported on Thursday.
THE Consumer price indexA large measure of goods and services in the US economy, dropped 0.1% seasonally adjusted in March, placing the inflation rate from 12 months to 2.4%, compared to 2.8% in February.
Excluding food and energy, so -called basic inflation operated at an annual rate of 2.8%, which increased by 0.1% for the month. It was the lowest rate for central inflation since March 2021.
Wall Street was looking for an inflation of titles of 2.6% and a 3% nucleus, according to Dow Jones' consensus.
The drop in energy prices has contributed to maintaining tamed inflation, as a 6.3% drop in petrol prices contributed to leading to a larger drop of 2.4% of the energy index. Food prices climbed 0.4% over the month. Egg prices increased by 5.9% and increased by 60.4% compared to a year ago.
In addition, the prices of shelters, among the most obstinate components of inflation, increased by 0.2% in March and increased by 4% over a 12 -month basis, the smallest gain since November 2021. The prices of used vehicles were down 0.7% while new vehicle costs increased only 0.1%, in advance on the tariffs that should strike the automatic sector.
Airline prices decreased 5.3% in March and motor vehicle insurance dropped by 0.8% and prescription medicines dropped by 2%.
Future scholarships Indicated an open widely lower than Wall Street after the release, while the yields of the treasury were also negative.
The report one day after Trump's superb reversal Among certain parts of his pricing plans, he announced a delay in some of the most aggressive tasks carried out against dozens of nations. Instead, Trump left a 10% coverage of all imports announced last week and set a 90 -day window during which the White House will negotiate higher prices.
While Trump campaigned on reducing inflation, progress was slow to start in 2025.
The president nevertheless called on the federal reserve to reduce interest rates. Central bank officials have expressed reluctance to move with so much political uncertainty in the air, and market prices indicate that the Fed will wait until June before reducing rates.
The nature of The prices Driven most economists to expect a significant bump in inflation, although it is less clear now that Trump has opened the negotiation window.
“The release of today's softer IPC feels behind, taking into account the important changes in the commercial policy observed in recent days,” said Kay Haigh, a global co-chief of fixed income and liquidity solutions at Goldman Sachs Asset Management. “In the future, the Fed is likely to face a difficult compromise, because the price increases caused by prices are starting to move on to inflation data and the activity remains soft.”
Under -term market prices after the IPC report indicated little change in market expectations for interest rates, merchants tariffing in three or four reductions by the end of the year.
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