Consumer Prices Rise, Inflation ‘Remains Too Hot’

While services inflation began to moderate and rent prices rose at a slower pace, “inflation still remains too hot for the Fed’s liking,” according to Senior Economist at Wells Fargo in Charlotte, North Carolina Sarah House.

Although inflation continues to be more than 2x the Fed’s 2% target, Biden claimed the slowing of overall inflation provided “more breathing room for hard-working Americans.”

Reporting from Reuters:

The Consumer Price Index (CPI) climbed 0.1% last month after advancing 0.4% in February. A 4.6% decline in gasoline prices was offset by higher rental costs. Gasoline prices are set to rebound after Saudi Arabia and other OPEC+ oil producers early this month announced further oil output cuts.

The cost of food consumed at home fell 0.3%, the first decline since September 2020. Egg prices tumbled 10.9%. Meat, fruits and vegetables were also cheaper. But prices for cereals and bakery products as well as nonalcoholic beverages increased. It also cost more to eat out. In the 12 months through March, the CPI increased 5.0%, the smallest year-on-year gain since May 2021. The CPI rose 6.0% on a year-on-year basis in February.

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