#CPI&JoblessClaimsWatch

The latest U.S. economic data reveals a mixed outlook on inflation and the labor market. The Consumer Price Index (CPI) for March 2025 showed a modest decline of 0.1%, bringing the year-over-year inflation rate down to 2.4% from 2.8% in February. Core CPI, which excludes food and energy, increased by 0.1%, indicating persistent underlying inflationary pressures.

In the labor market, initial jobless claims rose slightly by 4,000 to 223,000 for the week ending April 5, 2025. This increase aligns with economists' expectations and suggests that while layoffs have edged up, the labor market remains relatively stable.

These developments suggest that while inflation is showing signs of cooling, potential risks remain due to recent trade policies and tariff escalations. The Federal Reserve may adopt a cautious approach, potentially adjusting interest rates in response to evolving economic conditions.