Inflation Cooled to 2.4% in March, Lower Than Expected

quote:

---

Gasoline prices fell steeply over the month, while food prices rose

---

quote:

---

Inflation cooled last month, with a year-over-year measure of underlying prices falling to its lowest level in four years.

Consumer prices were up 2.4% in March from a year earlier, the Labor Department said Thursday, cooler than February’s gain of 2.8% and well below the 2.6% rise that economists expected.

---

quote:

---

Prices excluding food and energy categories—the so-called core measure economists watch in an effort to better capture inflation’s underlying trend—rose 2.8%, below forecasts for a 3% increase. That was the smallest increase in the core measure since March 2021.

---

quote:

---

Hotel prices also dropped sharply last month, a potential sign of weakening domestic demand.

The fall in gasoline prices pushed the energy index lower. Prices also fell in categories including vehicle insurance, and used cars and trucks. Prices picked up for food, medical care, clothing and new vehicles.

---

quote:

---

While government data on the economy remains solid—employers added 228,000 jobs in March, roughly twice the number added in February and in January—measures of consumer and business sentiment have weakened in recent weeks due to uncertainty about trade tariffs, prices and the path of the economy.

---