Inflation decreases in March to the lowest point in more than 3 years

Consumer prices fell 0.1 % in March, according to the Consumer Prices Index (CPI) It was issued by the work statistics office (BLS). This is the first monthly decrease since July 2022.

Annual inflation increased by 2.4 % compared to an increase of 2.8 % registered in February. The basic inflation, which excludes volatile energy and food prices, has grown at a rate of 2.8 % during the past year, the smallest increase for 12 months since March 2021. decreased by 6.3 % in gas prices by more than an increase in electricity and natural gas indicators. Food, however, rose 0.4 % in March. The meat, poultry, fish and eggs index has increased by 7.9 % over the past 12 months, and the price of eggs alone jumped by 60.4 %.

The inflation continues to move towards the target rate by 2 % of the federal reserve. However, the impact of President Donald Trump’s implementation of new tariff measures may hinder this progress and hinder economic growth, according to Jim Bird, the chief investment official in Plante Moran Financial.

Bird said: “With consumers’ willingness to the effect of customs tariffs on prices on a group of food and estimated goods, there is a state of great uncertainty about what will be in the near term of influence of growth and inflation, although the trend for each of them is more clear.” “This has sent the economists who are scrambling to update their expectations to reduce growth and increase the expected inflation throughout the year.”

Despite concerns about the effects of President Trump’s tariff, The federal reserve continues to maintain fixed interest ratesAnd it is not expected to make any major changes soon, including a possible price reduction. While customs tariffs can lead to high inflation and slow economic growth, the Federal Reserve awaits more clarity on the full impact of these policies before deciding on any path of work.

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The mortgage rates have increased to its lowest level in two months this week, and less than 7 % remain

The danger of stagnation increases

President Trump’s tariff also contributes to increasing the risk of stagnation. Several major financial institutions, including Goldman Sachs and JP Morgan, have raised recession. According to Baired, part of the problem is that with high prices due to tariffs, consumers may decide to limit their spending.

“Feelings have been strained in recent months, and there are already signs not only a more cautious mood but more bound spending,” said Bird. “Prices may rise, but this does not mean that consumers will pay any price for any product. Some may complain but continue to spend, but many are likely to trade to cheaper alternatives or delay the estimated purchases.

“This reality raises the possibility of a more prominent slowdown in the pace of the economy, as the risk of recession also increased,” Bird continued.

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The spring season looks promising

March March inflation data showed that it decreased to 4.0 % from 4.2 % in February. This is good news because shelter enlargement was a major force in maintaining high inflation in recent years and can help move the needle on interest rates.

Mortgage rates continue in the direction, as it remains less than 7 % for the twelfth week in a row and can enhance spring sales, according to the chief economist Freddy Mac Sam Khaturt.

“With the continued high purchase requests, the home spring season is formed to appear more convenient than last year,” Khuter said.

The average mortgage for 30 years was 6.62 % for the week ending April 10, according to the latest Freddy Mac Wiping the initial mortgage market. This is a decrease from the previous week, when an average of 6.64 % and less than 6.88 % was a year ago.

“Unfortunately, inflation is still painfully stubborn, which is much higher than the FBI’s goal by 2 % to reduce reduced rates,” said Jababi Absheer, CEO of Move Concierge. “Given that the housing sector has less currently to the current World Trade Environment, it will be useful for the Federal Reserve Bank for low prices and increased purchase of the spring and summer house.”

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