Consumer inflation went backwards for the first time in a year in the US. Although the consumer price index (CPI) is not the US Fed’s preferred measure of inflation, rises and falls in the rate of CPI inflation add to the overall picture of the US economy’s price level. March CPI figures released by the Bureau of Labor Statistics indicate consumer prices fell by 0.3% for the month, another fall from the previous month’s comparable figure of 0.1% and lower than the consensus market forecast of 0.0%.
On a year-on-year basis, the CPI increased by 2.4%, which is down from February’s comparable figure of 2.8%. Core prices, the measure of prices which strips out food and energy price changes, fell 0.1% for the month and in line with expectations. Over the last 12 months, core inflation has slipped down to 2.0% from February’s 2.2% (seasonally adjusted).
(The figures came out on Easter Friday which is not a trading day for U.S. bond markets.)