US inflation has fallen below 3%, marking the first time it’s done so in four years, according to data from the Bureau of Labor Statistics. This significant drop comes amidst growing anticipation of a new wave of tariffs launched by President Trump. March saw an unexpected dip, with the consumer price index decreasing by 0.1% after accounting for seasonal factors. This resulted in an inflation rate of 2.4%, down considerably from previous months. While prices are still rising for certain goods, this shift marks a welcome decrease in overall cost increases. Notably, energy costs saw the biggest impact, with gasoline prices plummeting by 6.3% in March, playing a significant role in the overall reduction in inflation. Food prices continued to climb, up 0.4% in March. However, prices were not rising at an alarming rate and contributed little to increasing inflation. Shelter costs also remained relatively stable. While they didn’t decline significantly, they saw minimal growth of just 0.2%. This is a welcome change from the more significant increases experienced in previous months. Used vehicle prices saw a slight dip, dropping by 0.7%, while new car prices remained stagnant at a minimal increase. These developments occur before Trump’s tariffs are set to take effect. With this looming factor, the auto market could experience a substantial shift in the near future. Meanwhile, core inflation, which excludes food and energy prices, only increased by 0.1% for March. This is noteworthy as it’s generally one of the slower-moving components of overall inflation. In fact, this is the lowest year-over-year increase since March 2021. This indicates a notable slowdown in price increases even for stable costs such as rent and medical expenses.