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.