US inflation slows to 5% in March

12/04/2023 Argaam


US inflation fell in March to its lowest level in nearly two years, with the slower core inflation suggesting that the Federal Reserve is likely to pause interest rate hikes.

 

Earlier today, April 12, the Bureau of Labor Statistics data showed that the Consumer Price Index (CPI) fell year-on-year (YoY) to 5% in March, compared to 6% in February — the smallest 12-month increase since May 2021.

 

On a monthly basis, CPI increased by 0.1% in March over the prior month, against expectations for a 0.2% rise.

 

Core CPI, which excludes food and energy, rose slightly to 5.6% from 5.5% in February, matching estimates, while the monthly core rate was 0.4%, down from 0.5% the previous month.

 

While the inflation rate has eased, it remains far above the Fed's 2% target, as core inflation remains stubbornly high.

Last year, the Federal Reserve raised interest rates nine times in a bid to cool the economy and tame inflation, which has soared amid recovery from the pandemic.

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