#CPI&JoblessClaimsWatch In March 2025, U.S. consumer prices unexpectedly declined by 0.1%, marking the first monthly drop in nearly five years. This decrease was primarily driven by lower gasoline and used vehicle costs. However, core inflation rose 2.8% year-over-year, the smallest annual increase since 2021. The decline in headline inflation is attributed to weakened consumer demand amid recession fears tied to escalating tariffs on Chinese imports. citeturn0news12

Simultaneously, the labor market remained resilient. Weekly jobless claims rose slightly by 4,000 to 223,000 for the week ending April 5, aligning with economists' expectations. The four-week moving average remained steady at 223,000, indicating a stable labor market despite economic uncertainties. citeturn0news14 In March, the U.S. added 228,000 jobs, although the unemployment rate edged up to 4.2%. citeturn0search0

Overall, while inflation shows signs of easing, the labor market continues to demonstrate strength, suggesting a complex economic landscape influenced by trade policies and consumer sentiment.