10.04.2025 16:02
The latest inflation data released in the U.S. came in below market expectations. Accordingly, the annual inflation rate in the U.S. for March was 2.4%, which is below the expected 2.6%.
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It was expected that the additional tariffs announced by U.S. President Donald Trump would lead to high inflation and recession in the U.S. Although the risk of high inflation and recession still persists in the long term, the initial figures proved the opposite. The inflation rate for March revealed that the American economy has not yet priced in the effects of the trade wars.
INFLATION CAME IN LOWER THAN EXPECTED
The U.S. Department of Labor announced the consumer price developments for March. Accordingly, the annual inflation in the U.S. in March was 2.4%, which is below the expected 2.6%. Consumer prices decreased by 0.1% compared to the previous month.
Excluding food and energy prices, the core CPI increased by 0.1% month-on-month in March, while the annual increase was 2.8%. Expectations were that core inflation would be 0.2% month-on-month and 3% year-on-year in March. The announced data is being closely monitored in terms of the U.S. Federal Reserve's (Fed) interest rate policy, and it is considered that the slowdown in price increases could affect monetary policy expectations.
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