Consumer prices experienced a decline of 0.1% in March compared to the previous month, reversing the 0.2% increase noted in February, as reported by the Bureau of Labor Statistics on Thursday.

This represents the first monthly price decrease since May 2020, according to CNN, and may indicate future trends under President Donald Trump’s administration.

Furthermore, the bureau indicated that its all-items index increased by 2.4% over the 12 months ending in March, which is a reduction from the 2.8% rise recorded over the 12 months ending in February.

“Wall Street had anticipated a headline inflation rate of 2.6% and a core rate of 3%, based on the Dow Jones consensus,” CNBC stated.

Decreasing energy prices played a role in moderating inflation in March, with gasoline prices falling by 6.3%—a reduction that contributed to a 2.4% drop in the overall energy index. In contrast, food prices rose by 0.4% during the month, with egg prices increasing by an additional 5.9% and up 60.4% compared to the same time last year.

Additionally, shelter costs, which are usually one of the most resistant elements of inflation, only increased by 0.2% in March and were 4% higher over the past year—the smallest annual increase since November 2021. Prices for used vehicles decreased by 0.7%, while new vehicle prices experienced a slight rise of just 0.1%, all in anticipation of upcoming tariffs expected to significantly affect the auto industry.

Airline ticket prices fell by 5.3% in March, while the cost of motor vehicle insurance decreased by 0.8%, and prescription drug prices dropped by 2%. Following this announcement, stock market futures suggested a significantly lower opening on Wall Street, and Treasury yields fell into negative territory, as reported by CNBC.

This report was released just one day after Trump made a notable change in his tariff policy. He postponed some of the more stringent duties imposed on numerous countries while maintaining a 10% blanket tariff on all imports, and he established a 90-day timeframe during which the White House will negotiate modifications to the elevated tariffs.

Despite his campaign promise to reduce inflation, progress has been sluggish at the beginning of 2025. Nevertheless, Trump has urged the Federal Reserve to decrease interest rates.

However, officials at the central bank have shown caution due to considerable policy uncertainty, and current market expectations indicate that the Fed will likely hold off on rate cuts until June.

Most economists had anticipated that the tariffs would lead to a notable increase in inflation, although this outcome appears less certain now that Trump has initiated a negotiation period for revising the tariffs.

“Today’s CPI release, which was softer than expected, seems to reflect past conditions, considering the significant changes in trade policy observed in recent days,” stated Kay Haigh, global co-head of fixed income and liquidity solutions at Goldman Sachs Asset Management, according to the news outlet. “Looking ahead, the Fed is likely to encounter a challenging trade-off as tariff-induced price hikes begin to influence inflation data while economic activity remains subdued.”]} }}]}

CNBC added: “Futures market pricing after the CPI report indicated little change in market expectations for interest rates, with traders pricing in three or four cuts by the end of the year.”

Inflation has been slowing or decreasing since Trump took office.

The U.S. Bureau of Economic Analysis released its Personal Consumption Expenditure (PCE) Index in late February, a key measure of inflation, and it showed just a fractional 0.3% increase last month as Trump began to tackle the economy.

Since inflation typically rises over time, economists focus not on whether it increased, but on the pace of the increase. The latest figures aligned with expert expectations, according to The Center Square.

The index increased by 2.5% compared to the same time last year, or 2.6% when excluding food and energy costs. While economists had anticipated a steeper decline in inflation by now, the current figures remain significantly lower than the rapid inflation rates experienced during the Biden administration.