US Inflation Unexpectedly Cools Ahead of Tariffs Impact

But good news risks being short-lived after Trump puts in place more expansive tariffs

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NEW YORK - Underlying US inflation cooled broadly in March, indicating some relief for consumers before widespread tariffs that risk contributing to price pressures.

The consumer price index (CPI), excluding often volatile food and energy costs, increased 0.1 per cent from February, the least in nine months, according to Bureau of Labour Statistics data out on April 10. Compared with March 2024, the core CPI rose 2 per cent, remaining the tamest in nearly four years.

The overall CPI declined 0.1 per cent from a month earlier, the first decrease in nearly five years, and rose 2.4 per cent on a year-over-year basis.

The CPI was helped by a decline in energy costs, used cars and airfares, as well as slower price growth in apparel.

Treasury yields slid and S&P 500 index futures remained lower, and the dollar extended its decline on the day.

Though the figures indicate some relief for consumers who have struggled with higher prices for years, the good news risks being short-lived after President Donald Trump put in place more expansive tariffs.