The U.S. consumer inflation rate eased to 2.4% for the 12-month period ending in March, according to new data released by the Bureau of Labor Statistics.

The 2.4% rate is tied for the lowest inflation rate the U.S. has seen in recent years. The drop in the U.S. inflation rate was mostly tied to falling energy prices in March.

The March 2025 inflation rate does little to indicate what will transpire in the coming months. President Donald Trump implemented 25% tariffs on steel and aluminum imports in March, and global 10% duties on most other goods last week.

Economists have said that companies will pass the cost of the tariffs onto consumers, resulting in higher prices and increased inflation. President Trump had announced that he would implement larger tariffs against dozens of other nations, but he relented on Wednesday by pausing them for 90 days.

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The Bureau of Labor Statistics released the updated CPI on Thursday. The CPI weighs the costs of goods based on their importance, with items such as food, shelter, and energy typically weighted more heavily.

March's inflation rate showed that prices actually were 0.1% lower than in February. March's report represented the first time since July 2022 that the CPI was lower than the month before. Over the last decade, prices have generally increased at a rate of 3.2% per year. Over the last 20 years, consumer inflation has typically risen by 3% annually. The Federal Reserve, however, has aimed to keep annual inflation at approximately 2%.

Are wages keeping up with inflation?

Wages have slightly outpaced inflation, meaning the typical American has regained some of the buying power lost in 2021 and 2022. U.S. workers earned 3.8% more per hour in March compared to a year earlier. Workers also saw their weekly earnings increase by 3.2% in March compared to the previous year.