Inflation Dips to 2.4% — Lowest Since 2020

For the first time in four years, U.S. inflation has dipped below 3%, clocking in at 2.4% year-over-year, according to the Bureau of Labor Statistics. That’s thanks to a 0.1% month-over-month decline in the Consumer Price Index (CPI) for March—marking a rare outright drop in headline prices. The news hit just as President Trump preps a new wave of tariffs, potentially reshaping the economic landscape again.

Here’s What’s Driving the Slowdown

🛢️ Gas Prices Tank.

• Gasoline dropped 6.3% in March.

• Energy index down 2.4%.

This alone helped pull inflation numbers lower.

🍳 Food Prices Up.

• Overall food: +0.4% MoM.

• Eggs: +5.9% MoM, +60.4% YoY.

🏠 Shelter Prices Stabilize.

• Up just 0.2% in March.

• Still +4% YoY, but cooling faster than in previous months.

🚗 Car Prices Flat or Down.

• Used vehicles: –0.7%.

• New cars: +0.1%.

Аuto market is calm for now—but Trump’s tariffs may hit it hard next.

Core Inflation Slows Too — That’s Big

📉 Core CPI (excludes food & energy):

• +0.1% MoM, +2.8% YoY.

• That’s the lowest core inflation since March 2021.

This drop in core inflation matters most for the Federal Reserve, as it signals that even “sticky” expenses like rent and healthcare aren’t rising fast.

“It’s a big deal—core inflation doesn’t fall this easily unless something real is shifting,” analysts noted.

Tariffs Loom as Potential Spoiler

While March brought relief, Trump’s upcoming tariffs could reignite inflation. The auto market, in particular, is vulnerable to sudden cost spikes once import duties hit. Investors are watching closely to see if inflation’s downward trend holds—or flips on its head.