Consumer prices unexpectedly declined in March for the first time since 2020, according to The Wall Street Journal. The consumer-price index fell by ten basis points, and annual inflation eased to 2.4%, below economists’ expectations. The drop was driven largely by falling gas, airline, and hotel prices. Economists warn the decline is likely short-lived, as Trump’s sweeping new tariffs, announced April 2, have yet to hit the data. Food costs continued to rise, and analysts expect inflation to rebound in coming months.
