U.S. consumer prices rise by 2.4% year-on-year in March

 U.S. consumer prices increased by less than anticipated in March on an annualized basis, and declined month-on-month, although analysts have flagged that the figures cover a period before the implementation — and eventual delay — of President Donald Trump’s sweeping tariffs.

The consumer price index rose by 2.4% in the twelve months through March, after moving up by 2.8% in February. A 6.3% fall in gasoline prices more than offset jumps in electricity and natural gas costs, while stubbornly-elevated egg prices helped underpin a climb in food expenses.

On a monthly basis, the figure decreased by 0.1%, compared to a previous uptick of 0.2%, according to the Labor Department’s Bureau of Labor Statistics.

Economists had expected readings of 2.5% year-on-year and 0.1% month-on-month.

The so-called “core” measure, which strips out volatile items like food and fuel, came in at 2.8% annually — the lowest since 2021 — and 0.1% versus the prior month. Both numbers were cooler than in February, and slower than anticipated.

In a note to clients, analysts at Vital Knowledge said that despite signs of easing in March’s consumer price index, the headline figure remains above the Federal Reserve’s 2% target level. Minutes from the Fed’s meeting last month showed that policymakers remain worried that twin tariff-fueled risks of higher inflation and slower growth are facing the U.S. economy.

Thursday’s report comes after Trump abruptly announced a reversal of most of his punishing and sweeping tariffs on a host of countries on Wednesday, saying he would pause them for 90 days. However, Trump said in a social media post that these nations would still face a “substantially lowered Reciprocal Tariff” of 10%.

Crucially, the halt did not apply to China, long the main focus of Trump’s trade-related ire. Instead, he said he would lift the tariffs on Chinese imports to a staggering 125% — a move that came after Beijing raised its own duties on incoming U.S. products to 84%, intensifying a trade war between the world’s two largest economies. China was the second-biggest source of U.S. imports last year.

Explaining his stunning about-face on the tariffs he first unveiled at a White House event on April 2, Trump, who had previously insisted that his elevated levies would remain in place and told Americans to “BE COOL!” despite recent financial market ructions, said that people were “getting yippy.”

U.S. stock futures retreated on Thursday, after Trump’s sudden tariff reprieve sparked a sharp surge in equities in the prior session. Bond yields also ticked lower following a steep sell-off in U.S. government debt that Trump appeared to cite as one motive for his decision to delay the tariffs.