US Inflation has eased more rapidly than even economists had hoped. March 2025 saw the annual inflation rate slide to 2.4% down from 2.8% in February 2025, better than the 2.6% economists were predicting. Thank this decrease to reduced consumer spending on gasoline, travel and used cars and trucks.
The Bank of Canada held its benchmark rate steady yesterday at 2.75%. This means that the prime rate will remain unchanged at 4.95%. It is the first time in the past seven months that rates didn’t dip south after a Bank of Canada quarterly meeting. This decision reflects the weakening inflation data published yesterday. In a statement, the Central Bank declared, “Consumption, residential investment and business spending all look to have weakened in the first quarter.”
Trade tensions are also disrupting recovery in the labour market. Employment declined in March and businesses are reporting plans to slow their hiring. Wage growth continues to show signs of moderation.
Tariffs will continue to play a role in the rate of inflation as the full impact of these increased costs make their presence felt on consumer prices and the market. As most goods are produced in China and 71% of Amazon sellers source their products from that country, the 145% tariff on their goods has yet to make its impact on the market and consumer spending.
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