Inflation in March it stood at 5.0% year on year. and it was the lowest reading since May 2021, before price increases hit their highest level in 40 years.
According to the Bureau of Labor Statistics (BLS) report, the inflation report add nine months down and sends a new signal to the Federal Reserve (Fed) for its price control strategy.
Consumer price index (CPI) data for March falls below a low of 6% for the first time in more than a year and adds nine months since inflation peaked at 9.1% last June when gas prices skyrocketed prices in the USA.
Markets and analysts have been looking forward to the March inflation report for the third month of 2023 as it comes out after two banks closed due to capital flight.
The inflation data also came after the Fed learned that the US labor market, although still strong, showed biggest slowdown in recent months.
Now analysts are waiting for the Fed to receive March data on political decisions it will take at its next meeting in Mayalthough few relevant data on inflation and employment will be known by then.
On a monthly basis, the CPI report for March showed that year-on-year inflation continues to decline from 6.0% in February and 6.4% in January last year.
In a monthly comparison, the March report also showed a drop to 0.1% from 0.4% in February last year.
How inflation behaved in March
Core inflation, which excludes fuel and food prices, which are considered more volatile, was 5.6% yoy. from 5.5% in February last yearaccording to the BLS report.
While on a monthly basis, core inflation stood at 0.4% compared to 0.5% in February last year.
How prices behaved in March
In March house prices once again set the pace for inflationary growthwith an 8.2% contribution to the CPI report.
For its part, energy prices were up 6.4% year-on-year in March last year from 5.2% in February last year.
Bye, gasoline prices they fell 17.4% year on year and 4.6% month on month.
The BLS report details that in March housing prices, auto insurance, airfarefurniture and home maintenance, and new vehicles were the ones that increased the most and impacted family budgets with the most force.
housing index, one of the most economically sensitive familiesreported an increase of 8.2% in March last year compared to last year.
For its part, food prices reached 8.5% year-on-year, while the index stood at 0.1% month-on-month.
Prices for medical services and used cars and trucks fell the most in March, according to the CPI report.
Source: La Opinion
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