FX.co ★ US Core Inflation Rate Hits 4-Year Low

In March 2025, the annual core consumer price inflation rate in the United States, which omits volatile sectors such as food and energy, decreased to 2.8%, a decline from February's rate of 3.1% and falling short of the market prediction of 3%. This represents the lowest inflation rate since March 2021. The decline was mainly due to a slowdown in price increases across several sectors: shelter saw a decrease to 4.0% from 4.2% in February, transportation services fell to 3.1% from 6.0%, medical care commodities dropped to 1.0% from 2.3%, apparel decreased slightly to 0.3% from 0.6%, and used cars and trucks declined to 0.6% from 0.8%. On a monthly scale, core consumer prices experienced a modest increase of 0.1% in March, following a 0.2% rise in February, and this was lower than the anticipated 0.3% increase projected by the market.