The Consumer Price Index (CPI) rose at an annual rate of 5% in March, down from a 6% increase in February.
After peaking at 9.1% last June, annual inflation is now at its lowest level since May 2021.
- Core CPI, which excludes food and energy prices, rose by 5.6% YoY.
- Prices increased by 0.1% from the previous month, while the core CPI saw a 0.4% monthly increase.
- Shelter costs, which measure home rentals, were up 8.2% on an annual basis.
- Shelter costs rose by 0.6% from February to March, the lowest monthly gain since November.
- The price of food at home, which includes groceries, fell by 0.3% from February to March, the first drop since September 2020.
- Food at-home prices are still up 8.4% on an annual basis.
- LPL Financial chief U.S. economist Jeffrey Roach said that the annual inflation rate could move toward the Federal Reserve's 2% inflation target if the country's economy slows down.
