US consumer prices drop in March due to cheaper gasoline and used vehicles, raising recession fears

From Yahoo Finance: 2025-04-10 00:04:00

In March, U.S. consumer prices dropped due to cheaper gasoline and used vehicles, raising concerns about softening demand amid recession fears from tariffs. Financial markets predict potential Federal Reserve interest rate cuts. The CPI fell 0.1%, showing a decline in discretionary spending. Trump’s tariffs on Chinese goods may lead to inflation.

Reports of Canadians boycotting U.S. travel surface as Delta Air Lines notes a stall in demand. Trump’s escalating trade war may impact consumer goods prices. The CPI data, while showing a decrease, likely doesn’t capture the full effect of tariffs. Economists warn against overlooking inflation amidst escalating trade tensions.

Gasoline prices fell 6.3% while food prices rose 0.4%. The CPI advanced 2.4% in the past 12 months. Trump suspends some tariffs but increases others, raising recession concerns. Financial markets expect the Fed to resume interest rate cuts. The ongoing trade war may impact inflation and growth in the U.S. economy.



Read more at Yahoo Finance: US consumer inflation eases ahead of tariffs