U.S. Inflation Slows in March as Consumer Prices Dip for First Time in Nearly Five Years

Consumer prices dipped by 0.1% in March when adjusted for seasonal factors, following a 0.2% rise in February, according to data released Thursday by the U.S. Bureau of Labor Statistics.

According to the agency, March marked the first monthly decline in overall inflation in almost five years.

However, the report does not reflect the full impact of the Trump administration’s latest tariffs, which are expected to influence next month’s data.
Despite the stronger-than-expected inflation report, the stock market fell on Thursday.

For the 12 months ending in March, overall consumer prices climbed 2.4% before seasonal adjustment—slower than the 2.8% year-over-year increase reported for February.

A decline in energy costs contributed to controlling inflation. Energy prices dropped 2.4% in March, led by a 6.3% fall in gasoline prices, which outweighed upticks in electricity and natural gas costs. In contrast, food prices increased by 0.4% during the month.

The core Consumer Price Index, which excludes the more unpredictable food and energy categories, also showed signs of slowing. It rose by 0.1% in March, following a 0.2% increase in February. Over the past year, the core index grew 2.8%, marking the smallest annual gain since March 2021.

In March, prices for items such as medical care (+0.5%), shelter (+0.2%), education (+0.5%), apparel (+0.4%), and new cars (+0.1%) increased. Meanwhile, the indexes for airline tickets (-5.3%), auto insurance (-0.8%), used vehicles (-0.7%), and recreation (-0.3%) were among those that declined.