US Consumer Price Index Cools in March

On Thursday, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1% in March on a seasonally adjusted basis, following increases of 0.2% in February and 0.5% in January. Over the past 12 months, the all-items index rose 2.4% before seasonal adjustment.

The energy index fell 2.4% in March, driven by a 6.3% drop in gasoline prices, which more than offset increases in the electricity and natural gas indexes. In contrast, the food index rose 0.4%, with food at home up 0.5% and food away from home up 0.4%.

The index for all items excluding food and energy increased 0.1% in March, following gains of 0.2% in February and 0.4% in January. Categories with notable increases included personal care, medical care, education, apparel, and new vehicles. Meanwhile, indexes for airline fares, motor vehicle insurance, used cars and trucks, and recreation declined.

Year-over-year, the all-items index rose 2.4% through March, down from a 2.8% increase in February. The index excluding food and energy rose 2.8% over the past 12 months—the smallest 12-month gain since March 2021. The energy index fell 3.3% over the year, while the food index increased 3.0%.