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Inflation Declines to Five-Month Low Amid Ongoing Tariffs
Inflation data shows a decrease, providing some positive economic indicators:
- Headline CPI for March rose 2.4% annually, below the projected 2.6% and down from February's 2.8%.
- Monthly prices fell by 0.1%.
- Core CPI (excluding food and energy) increased 2.8% year over year, down from 3.1% in February.
Despite this, tariffs remain a concern:
- The White House has paused aggressive tariffs for three months, but a 10% levy is still in place for most goods.
- Chinese imports face significantly higher fees of 145%.
- Sector-specific tariffs, such as those on auto parts, continue to affect prices.
Market sentiments are mixed, as trade war fears could overshadow inflation optimism.