Surprise U.S. CPI Drop Raises Inflation Concerns Amid Tariff Turmoil

U.S. consumer prices unexpectedly fell in March, but inflation risks loom due to increased tariffs on Chinese goods under President Trump. The consumer price index dipped 0.1%, with energy costs declining. Economists had predicted a rise. Tariff moves could lead to higher inflation and economic risks.

In a surprising turn, U.S. consumer prices experienced an unexpected drop in March. Despite this, potential inflation risks have been heightened due to President Donald Trump's decision to increase tariffs on Chinese imports, while reducing duties on goods from other nations.

According to the Labor Department's Bureau of Labor Statistics, the Consumer Price Index (CPI) fell by 0.1% last month after a 0.2% increase in February. The decline is attributed to lower energy costs and fading effects of earlier price hikes.

Although economists forecasted a slight rise in CPI, the current economic landscape, marked by trade tensions and tariff adjustments, presents a looming threat of accelerated inflation and economic instability in the near future.

(With inputs from agencies.)