U.S. consumer prices increased by 2.4% year-over-year in March

U.S. consumer prices rose less than expected in March on an annual basis and dipped slightly from the previous month, though analysts note that the data predates the implementation—and eventual postponement—of President Donald Trump’s extensive tariff package.

The Consumer Price Index (CPI) increased by 2.4% over the 12 months ending in March, down from February’s 2.8% rise. A sharp 6.3% decline in gasoline prices helped offset gains in electricity and natural gas, while persistently high egg prices contributed to an uptick in overall food costs.

On a monthly basis, the CPI fell by 0.1%, reversing a 0.2% rise in the prior month, according to data from the Labor Department’s Bureau of Labor Statistics.

Economists had projected a 2.5% year-over-year rise and a 0.1% increase from the previous month.

The “core” CPI—which excludes the more volatile food and energy components—rose 2.8% annually, its lowest level since 2021, and 0.1% on a monthly basis. Both figures were cooler than February’s readings and came in below economists’ forecasts.

In a note to clients, analysts at Vital Knowledge remarked that despite some relief in March’s CPI figures, the headline inflation rate remains above the Federal Reserve’s 2% target. Fed meeting minutes released earlier this month reflected concerns among policymakers about inflationary pressures and growth risks tied to the tariffs.

The report followed Trump’s surprise announcement on Wednesday that he would suspend most of his aggressive tariff measures for 90 days. Nonetheless, he stated in a social media post that affected countries would still be subject to a reduced “Reciprocal Tariff” of 10%.

Meanwhile U.S. stock futures edged lower on Thursday, pulling back after a strong rally in the previous session triggered by President Trump’s unexpected pause on tariffs. Meanwhile, bond yields also declined, following a sharp sell-off in U.S. government debt—a development Trump seemingly referenced as a key factor in his decision to postpone the tariff measures.