The US consumer prices fell in March, were delayed due to a decrease in the price of goods and challenge the predictions that President Trump’s rates plans would increase prices. This was the first drop in consumer prices in almost three years and only the second decrease since inflation accelerated under Joe Biden at sausage rates in decades.
The consumer price index fell by 0.1 percent compared to the previous month after climbing each since July 2022. Economists had predicted that prices would increase by 0.1 percent.
Central consumer prices, a measure that excludes volatile food and energy prices, increased 0.1 percent, much less than 0.3 percent expected. This was the smallest increase in central prices since the first mandate of President Trump as president.
The price drop marks an important political victory for Donald Trump, who said in the campaign that would reduce consumer prices.
“From the first day, we will end the inflation and make the United States again affordable, to reduce the prices of all goods,” Trump said.
Economists were skeptical that prices would fall, or arguing that while the rate of price increases could decrease, the level of absolute prices would decrease. The March report shows that Trump was right that prices could be lowered.
Energy prices fell 2.4 percent in the month, led by a 6.3 percent decrease in gasoline prices.
Not everyone was good news. Food prices increased sharply, including egg prices. The supermarket rose 0.5 percent and dinner prices increased 0.4 percent.
Consumers saw lower prices for airline rates, motor vehicle insurance, used cars and trucks and recreation. New cars prices increased 0.1 percent and are flat a year ago. Clothing prices increased 0.4 percent, a slowdown in inflation of the increase of 0.4 percent previous. Smart phones prices fell 1.1 percent.
The prices of central goods fell 0.1 percent in the month. The prices of central services increased by 0.1 percent, the smallest increase since August 2021.
Compared to a year ago, the consumer price index has increased by 2.4 percent, the smallest annual since February 2021. Central prices increase 2.8 percent, the lowest inflation rate since March 2021.
