Consumer Prices Fall in March

CPI data lower than expected for March

After yesterday’s retail sales data, there were doubts in some camps about how today’s consumer prices data would turn out. And those doubts proved founded. CPI data is in, and consumer prices dipped more than expected for the month of March.

Falling consumer prices are evidence of deflation, the opposite of inflation. Instead of economic growth, which often drives a rise in prices, the economy appears to be experiencing deflation, or a drop in prices. With decreased jobs and wages, it is no surprise that low demand is keeping retailers and others from raising their prices.

The U.S. dollar is expected to see some gains in forex trading on this information. With economic data still showing weakness, the greenback is likely to be used as a safe haven investment. However, once the economy picks up, there is a chance that dollar weakeness will return to forex trading.

See Also

• More on the U.S. Dollar in Forex Trading
  Economic data and the greenback
• Greenback in Currency Trading
  Forex trading with world currencies

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