The latest U.S. economic indicators reveal a nuanced picture. In March 2025, the Consumer Price Index (CPI) decreased by 0.1%, marking the first monthly decline since May 2020. Annual inflation cooled to 2.4%, below the anticipated 2.6%, driven by significant drops in gasoline and airfare prices . However, core inflation, excluding food and energy, remained at 2.8%, with increases in food, medical care, and clothing costs .
Simultaneously, the labor market showed resilience. Initial jobless claims for the week ending April 5 rose slightly by 4,000 to 223,000, aligning with expectations . March saw the addition of 228,000 jobs, although the unemployment rate edged up to 4.2% .
Despite these positive signs, economists caution that recent tariff policies could reignite inflationary pressures in the coming months, potentially complicating the Federal Reserve’s monetary policy decisions .