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Consumer inflation is set to take its biggest monthly dip in three years hit by the dual pressures of cascading global oil prices and lower consumption from extensive US layoffs, FXStreet’s analyst Joseph Trevisani informs.

Key quotes

“The overall price index is forecast to drop 0.3% in March, the first decline since -0.1% in March 2018.”  

“The annual change should fall to 1.6% from 2.3% in February for the largest one month decrease since December 2014 when -0.1% followed November’s 0.8%.”

“Underlying inflation is predicted to edge lower to 0.1% on the month.  The annual rate will slip to 2.3% from 2.4% in the year.”  

“Falling prices will serve to confirm the economic ravages of the pandemic but it cannot elicit new policies or impact the dollar’s reserve and safety status.”