U.S. consumer prices likely increased marginally in March, but inflation risks are tilted to the upside after President Donald Trump doubled down on tariffs on imported Chinese goods even as he lowered duties on other nations.

Consumer prices fell in March for the first time since the outbreak of the pandemic in 2020, but economists warn inflation could get worse if the U.S. retains higher tariffs on China and the rest of the world.

Policymakers and economists say the latest data is only a temporary reprieve as tariffs could stoke higher inflation.

U.S. consumer prices unexpectedly fell in March amid cheaper gasoline and used motor vehicles, but the improvement in inflation is unlikely to be sustained after President Donald Trump doubled down on tariffs on imported Chinese goods.

The CPI fell last month as gas prices dropped sharply; so did airfares and hotel rooms, a sign prices cooled ahead of tariffs.

Normally, a consumer-price index reading as mild as Thursday's would set investors cheering in expectation of interest-rate cuts from the

Inflation slowed sharply in March, new data showed Thursday, underscoring the continued strength and resilience of the economy ahead of President Trump’s aggressive trade moves.

The projected figures, if accurate, would suggest inflation is starting to cool again after remaining elevated for most of the fall and winter.

President Trump commented on new Consumer Price Index data for March after holding his Cabinet meeting at the White House. CBS News' Nancy Cordes breaks down some of his remarks.