U.S. consumer inflation went into reverse in March as lower fuel prices outweighed increases in implied rents and medical costs. Consumer price index (CPI) figures released by the Bureau of Labor Statistics indicated seasonally-adjusted consumer prices fell by 0.1%, below expectations and lower than February’s comparable figure of 0.2%. However, on a 12-month basis, the consumer inflation rate increased from 2.3% to 2.4% (seasonally adjusted).
“Core” inflation, a measure of inflation which strips out the volatile food and energy components, increased by 0.2% for the month and 2.1% for the year, which was in line with expectations. February’s comparable figures were 0.2% and 1.9%.