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Inflation cooled down last month, a long-awaited break from years of surging prices.
The Consumer Price Index declined 0.1% month over month — the first time monthly CPI has slowed since May 2020. Prices increased 2.4% on a yearly basis, a considerable easing from February's 2.8% annual rise.
Air fares, car insurance, and used cars were among the major categories that decreased in March. But food, medical care, new cars, and apparel marched higher.
Here’s what the latest CPI report means for your household.
Food creeps back up
After remaining flat in February, grocery price growth jumped 0.5% in March.
The big (old) story: Eggs are up a whopping 60% from a year ago and nearly 6% from February.
A dozen large Grade A eggs, on average, cost $6.23 in March, up from $5.90 in February and far higher than the $2.99 average of a year ago.
Meat prices, especially beef, remain elevated: Ground beef is 10.4% higher than a year ago, and beef roasts are up nearly 9%. According to the BLS, a pound of ground beef now averages $5.80.
Some foods saw slower price growth, including peanut butter, tomatoes and lettuce.
The cost of eating out grew 0.4% from February and was 3.8% higher than a year ago.
Read more: Is now the time to buy gold? Prices rise again on tariff pause
Medical costs, senior care, and health insurance keep rising
Medical services grew 0.5% from February and are 3% higher than a year ago. That category includes hospital costs, which are 3.7% higher than a year ago, and nursing home care, which is up 4.8%. Home healthcare was 4.5% higher than a year ago, the BLS found.
Health insurance rose 3.1% compared to March 2024 and was up 0.4% monthly. Meanwhile, prescription drugs fell 2%.
The cost of driving
Price growth for used cars has slowed since last year, and in March notched another 0.7% monthly decline. New vehicle price growth was nearly flat — for now. That's a category to keep an eye on with tariffs on foreign cars expected to show up soon in sticker prices.
Auto insurance, which has been soaring for two years, slowed by 0.8% month over month but is 7.5% higher than a year ago.
Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.
There was better news at the gas pump.
The gasoline index dropped 6.3% in March, a relief from months of steep increases. As of April 10, the national average for gasoline was $3.22 per gallon, according to AAA data. That's up from an average of $3.09 in March but less than the $3.62 average of a year ago.
What's next
Inflation remains above the Federal Reserve's target of 2%. The major metric to watch however, is President Trump's on-again, off-again tariffs, whose full effects are not reflected in March inflation data. Combined with overall economic uncertainty around the tariffs, the Fed is expected to remain cautious when considering future interest rate cuts.
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