The unexpected decline in U.S. CPI in March reflects the gradual fading of the impact of price increases at the beginning of the year

Odaily Planet Daily News U.S. consumer prices unexpectedly fell in March, even as Trump lowered tariffs on other countries, inflation risks tended to rise. The U.S. Department of Labor's Bureau of Labor Statistics announced on Thursday that the CPI fell 0.1% month-on-month in March, compared with a 0.2% increase in February. The decline may reflect the gradual fading impact of lower energy costs and price increases at the beginning of the year. Excluding the volatile food and energy sectors, the core CPI rose 0.1% month-on-month in March and 0.2% in February. From a year-on-year perspective, the core CPI rose 2.8% in March and 3.1% in February. The March data may only reflect a small part of Trump's first wave of import tariffs. Capital Economics estimates that inflation will peak at around 4%, twice the Fed's 2% target. The minutes of the Fed's March 18-19 meeting released on Wednesday showed that policymakers were almost unanimous that the economy faces the risk of rising inflation and slowing growth. (Jinshi)