Inflation Cools Down as Consumer Price Index Drops in March
The Consumer Price Index (CPI) experienced a slight rise of 0.1% in March compared to the previous month. However, the year-on-year rate saw a significant decline of seven-tenths, dropping to 2.3%—marking it as the lowest figure since last October when it stood at 1.8%. This information was released on Friday by the National Institute of Statistics (INE).
According to the INE, the reduction in the CPI to 2.3% can be attributed to a decrease in electricity prices, following the price surge seen in March 2024. Additionally, the lower costs of fuels and lubricants for personal vehicles contributed to this decline. Furthermore, the prices related to leisure and culture also rose at a slower rate compared to March of the previous year.
With the drop in the year-on-year CPI in the third month of the year, inflation has finally ended five consecutive months of increases—raising hopes for a more stable economic environment moving forward.
The INE also provided insights into core inflation, which excludes unprocessed food and energy products from the CPI data. In March, core inflation decreased by two-tenths, landing at 2%—a figure that remains three-tenths below the general index. This indicates that while the general inflation rate is seeing a decline, the core metrics suggest some underlying pressures may still persist.
As consumers and analysts digest this data, the focus will be on whether this downward trend in inflation can be sustained in the coming months, particularly as the global economic landscape continues to fluctuate.
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