Energy Prices Rise For the Second Straight Month
- Matching February’s rise, headline CPI increased 0.2 percent in March. Energy prices rose 1.1 percent, while food prices fell 0.2 percent. The year-over-year rate dipped back down into negative territory, at -0.1 percent. Even with moderate monthly rises, it will be difficult for the year-over-year CPI rate to increase in the coming months given the high base that was present during the middle of 2014.
Broad-Based Core Inflation
- Excluding food and energy, consumer prices increased 0.2 percent for the third straight month, bringing the year-overyear rate up to 1.8 percent. Gains in the core CPI were broad based with notable rises in rent, clothing, medical care and used cars & trucks. Stabilization of core inflation, coupled with “reasonable” confidence that inflation will rise to the 2 percent target, has the Fed on track for a rate hike later this year.
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