Sam Williamson, First American senior economist, welcomed the slowdown in year-over-year price growth.
“Amid the tariff uncertainty, today’s CPI report provided some positive signs for inflation, as the headline inflation decreased month-over-month for the first time in nearly three years,” he said. “In fact, both the headline and core inflation indices posted the slowest annual growth rates since inflation began surging in early 2021.”
However, despite the pause in some of the tariffs implemented by the Trump administration, continued levies on China, automotive parts, and steel and aluminum have economists concerned that inflation will begin to surge again.
Price decreases in the energy sector led the decline, as they fell 2.4% in March. Over the last 12 months, the CPI on energy commodities has decreased by 9.5%.
Other categories saw month-over-month increases, including food by 0.4%, new vehicles by 0.1%, apparel by 0.4%, shelter by 0.2%, and medical care services by 0.5%
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