In March, consumer prices in the U.S. rose only by 2.4% year-on-year, which is lower than the February level of 2.8% and the market forecast of 2.6%. This is the lowest level since the beginning of 2021 and an obvious signal: inflation is slowing down 📊❄️. However, the market reacted to this news without much enthusiasm 🤔.

📉 Why didn't the market react dramatically?
The surprise is not that big: the decline was already expected, just a bit weaker than projected.
Core inflation remains stable: if you exclude volatile food products and energy carriers, core inflation will still stay above the target of 2% 🧱
Markets have already "priced in" the rate cuts: And now they are waiting for confirmation of the Fed's actions, not just the data.
🏦 What does this mean for the Fed and interest rates?
Expectations about a rate cut have intensified, but are still far from certainty:
✅ Plus for "doves" (doves) — inflation is cooling down, which means the first rate cut can be considered as early as June-July 2025 🕊️.