Array
Headline CPI Down, Core Inflation Up, Underlying Inflation Still High
Inflation eased to the slowest pace in two years, but signals of underlying price pressures continue to indicate only minimal progress in restoring price stability.
The consumer price index (CPI), which measures the prices of goods and services purchased by U.S. households, climbed five percent compared with a year ago, the Department of Labor said Wednesday. That’s the lowest 12-month gain since May of 2021 and a big step down from the six percent recorded for February.
Core prices, which exclude food and energy, were up 5.6 percent compared with a year ago, an acceleration from the 5.5 percent gain in February.
On a month-to-month basis, CPI rose just 0.1 percent, down from 0.4 percent in February and below expectations for a 0.3 percent gain. Core CPI rose 0.4 percent for the month, in-line with expectations and down a tenth of a percentage point from the previous month’s reading.
Prices fell in some of the categories that have a big impact on consumer psychology. Grocery prices fell 0.3 percent. Gasoline prices plunged 4.6 percent. Electricity prices dropped by 0.7 percent. Used car and truck prices declined by 0.9 percent.
