Inflation slows more than expected in March in first round of data since Trump’s tariffs

US inflation slowed more than expected in March, according to the first month of consumer price data to account for the impact of President Trump’s sweeping tariff wars.

The Consumer Price Index rose 2.4% over the past 12 months through March, below expectations of a 2.6% rise and beneath last month’s 2.8% figure, the Bureau of Labor Statistics said Thursday.

Core CPI, which excludes volatile food and energy prices, came in at 2.8% — also below projections of a 3% jump and February’s 3.1% figure, according to the government data.

Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 fell 1%, 1.3% and 1.7%, respectively, soon after the report’s release, after making massive strides on Wednesday — with the Dow soaring nearly 3,000 points — after Trump announced a 90-day pause on nearly all tariffs.

The pause was a welcome reprieve for Wall Street, since panicked investors had led a massive week-long sell-off as they worried the taxes could reheat inflation and even trigger a recession, with the Dow losing nearly 5,000 points.