Consumer prices in the United States experienced a surprising drop in March, contradicting expectations despite recent tariff reductions by President Trump. The U.S. Department of Labor’s Bureau of Labor Statistics reported that the Consumer Price Index (CPI) decreased by 0.1% in March, reversing February’s 0.2% surge. This decline may indicate a moderation in energy costs and the waning impact of price increases earlier this year. Excluding volatile food and energy sectors, core CPI saw a 0.1% rise in March, matching February’s increase of 0.2%. While year-over-year, the core CPI climbed by 2.8% in March (down from 3.1% in February), this data likely reflects only a partial impact of Trump’s import tariffs. Capital Economics predicts inflation will peak at around 4%, double the Federal Reserve’s target rate of 2%. Minutes released Wednesday from the Federal Reserve’s March 18-19 meeting reveal that policymakers largely agree on the dual risks facing the economy: rising inflation and slowing growth.