U.S. Consumer Prices Climb 0.4% In March, Slightly More Than Expected
Largely reflecting continued growth in prices for shelter and gasoline, the Labor Department released a report on Wednesday showing U.S. consumer prices advanced by slightly more than expected in the month of March.
The Labor Department said its consumer price index climbed by 0.4 percent in March, matching the increase seen in February. Economists had expected consumer prices to rise by 0.3 percent.
Shelter prices rose by 0.4 percent and gasoline prices jumped by 1.7 percent, contributing over half of the monthly increase by the index.
Excluding prices for food and energy, core consumer prices still rose by 0.4 percent for the third consecutive month. Core consumer prices were also expected to increase by 0.3 percent.
The advance by core prices reflected the increase in shelter prices as well as higher prices for motor vehicle insurance, medical care, apparel and personal care. Decreases in pries for used cars and trucks, recreation and new vehicles helped limit the upside.
The report also said the annual rate of consumer price growth accelerated to 3.5 percent in March from 3.2 percent in February. Economists had expected a more modest acceleration to 3.4 percent.
Meanwhile, the annual rate of core consumer price growth came in at 3.8 percent in March, unchanged from February. Core price growth was expected to slow to 3.7 percent.
“The buoyant advance in inflation in March pours cold water on the view that the faster readings in January and February simply represented start of the new year price increases that were not likely to persist,” said Nationwide Chief Economist Kathy Bostjancic.
She added, “The lack of moderation in inflation will undermine Fed officials’ confidence that inflation is on a sustainable course back to 2% and likely delays rate cuts to September at the earliest and could push off rate reductions to next year.”
The Labor Department is scheduled to release a separate report on Thursday on producer price inflation in the month of March.
Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent.
For comments and feedback contact: editorial@rttnews.com
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.