📉 Inflation Eases, but Tariff Concerns Loom

In March 2025, U.S. consumer prices saw an unexpected decline of 0.1%, marking the first drop in nearly five years. This decrease was primarily driven by lower gasoline and used vehicle costs. However, core inflation, which excludes food and energy, rose by 2.8% year-over-year—the smallest increase since 2021.

Despite this cooling, inflation expectations have surged, with consumers anticipating a 6.7% rise over the next year—the highest since 1981. This shift is attributed to escalating trade tensions, as President Trump increased tariffs on Chinese imports to 125%, prompting fears of prolonged inflation and potential recession .#CPI&JoblessClaimsWatch