U.S. Inflation Falls to Five-Month Low as Analysts Warn of Rising Prices Ahead

In March, U.S. inflation unexpectedly cooled, with the Consumer Price Index (CPI) rising 2.4% annually, down from 2.8% in February, marking its lowest rate since September. The overall CPI fell by 0.1% month-over-month, aided by a drop in gas prices, although food costs rose by 0.5%. Core inflation, which excludes food and energy, increased by 2.8% year-over-year, down from 3.1% the previous month. Despite this positive trend, economists warn that President Trump's tariffs—especially a 125% levy on Chinese imports—will likely exert upward pressure on prices in the future. The recent tariff pause for 90 days has created uncertainty, as many businesses remain cautious about future trade policies. Overall, the data suggests a temporary easing of inflationary pressures, which may influence Federal Reserve policy in upcoming meetings.