100 Days: Inflation Falls To Zero Even as Income and Spending Grow
Share this @internewscast.com

Inflation fell to zero in March, a welcome reprieve after persistent inflation under President Biden and the best reading in nearly five years, even as consumer spending accelerated sharply and incomes rose solidly — a powerful signal of economic improvement at the start of the Trump administration.

The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, was flat in March, according to data released Wednesday by the Bureau of Economic Analysis. Core PCE — which strips out food and energy — was also unchanged, marking the tamest monthly inflation reading since early 2020.

Compared with a year ago, the PCE index is up 2.3 percent and the core index is up three percent, both below the month-earlier figures. The Federal Reserve says it targets two percent inflation when making monetary policy.

President Donald Trump anticipated the fall in inflation at a rally Tuesday night in Michigan.

“Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that,” Trump said.

The good news on prices was not caused by a weakening American consumer. Inflation-adjusted consumer spending rose 0.7 percent, the strongest gain in over a year. Durable goods purchases jumped 3.2 percent, while services spending climbed 0.6 percent. The spending surge followed a February revision upward, showing that households had already been ramping up consumption before the March acceleration.

The March figures suggest an economy regaining its footing — with inflation cooling off and consumer strength broadening. Real disposable income increased 0.5 percent, wages and salaries climbed 0.5 percent, and farm income soared, boosted by commodity assistance payments. The personal saving rate held steady at 3.9 percent, indicating households are not burning through cash to sustain spending.

Over the entire first quarter, core PCE inflation ran at a 3.5 percent annualized pace, largely reflecting stronger readings in January and February. But March’s flat result resets the trajectory and bolsters the case that inflation is stabilizing — even as consumer spending and business investment expands.

Although the first-quarter GDP report showed a modest contraction, driven by a surge in imports and slowing inventory accumulation, the strength of March’s consumer and inflation data points to a fundamentally healthier economy than the topline figure suggests. Rather than a warning sign, the March data suggests a robust and improving U.S. economy — with inflation easing and demand growing.

The latest inflation data supports President Trump’s argument that the Federal Reserve has room to cut interest rates without reigniting price pressures. With core inflation flat and consumer demand strong, the case for maintaining restrictive monetary policy may be weakening.

Share this @internewscast.com
You May Also Like

Michelle Mone Acquires £10M Mansion Amidst Calls for Repayment of £122M PPE Funds

Michelle Mone, under immense scrutiny to return a staggering sum of tens…

Unveiling the Heist of the Century: Two Arrested in Daring Louvre Crown Jewels Raid

Authorities have apprehended two individuals linked to the audacious £78 million theft…

Hollywood Mourns: Celebrated ‘Lassie’ Star Passes Away at 100

The world of entertainment mourns the loss of one of its most…

From Tragedy to Forgiveness: A Mother’s Journey to Befriend Her Son’s Killer

David Hodgkinson cherishes traditional ways of keeping in touch, favoring a heartfelt…

Retailers Turn to ‘Most Wanted’ App to Catch Shoplifters: A Game-Changer in Theft Prevention

To combat a surge in crime, shopkeepers across Scotland are turning to…

How Catherine Connolly is Steering Ireland Towards Progressive Change: Insights from LEO McKINSTRY

The recent presidential election in Ireland serves as a vivid illustration of…

From Mockery to Menace: The Unseen Impact of Windmills on U.S. Military Operations

Once dismissed by liberals when Donald Trump labeled wind farms as ‘eagle…

Bill Maher Uncovers the Hidden Message Behind Trump’s White House Makeover

Bill Maher has voiced his concerns over the recent renovations at the…

Urgent Search Intensifies for Canadian Siblings Missing for Five Months: A Community’s Last Hope

An urgent search effort is set to take place in November to…

Authorities Urgently Seek Information on Epping Sexual Assault Suspect

The government has urgently called on the public to assist in locating…

Kristen Bell’s Inner Circle Drama: Friends Reveal Shocking Secrets

Who would want to hear this? Actress Kristen Bell ignited controversy this…

Trump Raises Tariffs on Canada Following Controversial Ronald Reagan Ad Claims

President Donald Trump has announced a 10 percent tariff increase on Canadian…