Inflation declined in March for the first time in five years

Falling gasoline prices made the difference

By Mark Huffman of ConsumerAffairs

April 10, 2025

Key takeaways

• Inflation sees rare decline: In March, the Consumer Price Index (CPI) fell by 0.1%the first monthly decline in inflation in five years. This drop was mainly driven by a 6.3% decrease in gasoline prices.

• Mixed sector trends: While energy and medical care costs declined (energy index down 2.4%, medical care down 1.1%), food and shelter costs continued to rise. Grocery prices increased 0.5%, particularly in meat, poultry, fish, and eggs (up 1.3%), while the shelter index rose 0.2%, reflecting continued pressure on housing.

• Persistent food price pressures: Despite the overall decline in inflation, food costsespecially for groceries and dining outremain a pain point for consumers. Grocery prices rose for the first time in two months, and restaurant prices climbed 0.4%, underlining ongoing affordability challenges in everyday expenses.

For the first time since the start of the COVID-19 pandemic, inflation went down instead of going up. The Consumer Price Index declined in March by 0.1% after rising 0.2% in February.

Over the last 12 months, the nations inflation rate is 2.4%, getting closer to the Federal Reserves target of 2%.

What changed? The Bureau of Labor Statistics reports the index for energy fell 2.4%, led by a 6.3% decline in the index for gasoline. That more than offset increases in the cost of electricity and natural gas.

The cost of medical care declined by 1.1% and is up just 1% on the year. The cost of transportation services fell by 1.4% after declining by 0.8% in February.

However, the tame inflation numbers might not feel so tame at the supermarket. The food index rose 0.4% in March.

Food prices are still rising

The cost of food consumed at home the category for grocery prices rose 0.5% after being flat in February. Fruits and vegetables saw the biggest month-over-month decline, falling by 0.5%.

The cost of bakery products, dairy and beverages all rose. The index for meats, poultry, fish, and eggs posted the largest one-month increase, rising by 1.3%.

The index for food consumed away from home the category for restaurants rose 0.4%, the same as the month before.

The cost of shelter also continued to rise, albeit at a slower pace. The shelter index rose 0.2% after a 0.3% rise in February. The cost of rent rose by 0.3% while the owners equivalent of rent rose by 0.4%.

Sign up below for The Daily Consumer, our newsletter on the latest consumer news, including recalls, scams, lawsuits and more.

.newsletter-form {
display: flex;
max-width: 400px;
margin: 20px auto;
background: #f8f9fa;
padding: 10px;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0, 0, 0, 0.1);
}
.newsletter-input {
flex: 1;
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px 0 0 5px;
font-size: 16px;
outline: none;
}
.newsletter-input:focus {
border-color: #007bff;
}
.newsletter-button {
background: #2976D1;
color: white;
border: none;
padding: 10px 15px;
font-size: 16px;
border-radius: 0 5px 5px 0;
cursor: pointer;
transition: background 0.3s ease;
}
.newsletter-button:hover {
background: #0056b3;
}

Subscribe



#Inflation #declined #March #time #years