Data from the Bureau of Labor Statistics showed that the headline Consumer Price Index fell from 0.2% in February to -0.1% in March. On an annual basis, inflation declined from 2.8% to 2.4%, putting it on track to reach the Fed’s target of 2.0%.
The latest inflation data is likely to increase pressure on the Federal Reserve to resume interest rate cuts. The downward trend in inflation may continue, especially after Trump paused the Liberation Day tariffs on most countries.