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Thursday, April 10, 2025

US Inflation Rate Slows More Than Expected

US Inflation Rate Slows More Than Expected

In March 2025, the annual inflation rate in the United States decreased for the second consecutive month, reaching 2.4%. This marks the lowest rate since September of the previous year, dropping from 2.8% in February and falling short of the anticipated 2.6%. The prices of gasoline fell significantly by 9.8% compared to a 3.1% decrease previously, and fuel oil dropped by 7.6% against a prior 5.1% decline, whereas natural gas prices surged to 9.4% from 6%. The inflation rate also decelerated for shelter, decreasing to 4% from 4.2%, for used cars and trucks to 0.6% from 0.8%, and for transportation to 3.1% from 6%. Prices for new vehicles remained steady, unlike the previous decrease of 0.3%. Conversely, inflation for food items accelerated to 3% from 2.6%. The Consumer Price Index (CPI) experienced a 0.1% decline from the previous month, marking the first drop since May 2020, contrary to an expected 0.1% increase. The energy index fell by 2.4%, driven by a 6.3% decrease in gasoline prices, which compensated for increases in electricity (0.9%) and natural gas (3.6%). Furthermore, annual core inflation eased to 2.8%, the lowest since March 2021, and below the projected 3%. On a monthly scale, the core CPI rose by 0.1%, less than the expected 0.3% increase.


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