Overview

• US consumer prices rose 2.6% year-over-year in March, down from February's 2.8%, indicating a modest cooling of inflation.
• President Trump increased tariffs on Chinese goods to 125% while pausing new tariffs on other countries for 90 days, creating economic uncertainty.
• China's consumer price index fell by 0.1% in March, marking the second consecutive month of deflation and signaling weak domestic demand.
• Analysts predict US inflation could peak at 4% in the coming months as the effects of increased tariffs ripple through the economy.
• The Federal Reserve remains cautious, with policymakers noting that higher tariffs could sustain inflationary pressures despite recent declines.