WASHINGTON—The Consumer Price Index rose 2.4% year-over-year in March, indicating progress in the Federal Reserve's efforts to curb inflation toward its 2% target. This figure came in lower than the 2.6% increase predicted by several analysts.
“The March inflation report indicated solid progress toward the Federal Reserve’s inflation target,” said Dawit Kebede, America's Credit Unions Senior Economist. “However, this positive development is overshadowed by the implementation of new tariff measures, which are expected to exert upward pressure on prices and hinder economic growth.
"Prices declined in March on a monthly basis, while year-over-year inflation stood at 2.4%. Core inflation, which excludes volatile food and energy components, fell below 3% for the first time in four years. Both headline and core inflation eased more than anticipated,” Kebede added.