U.S. inflation eases as grocery prices fall for the first time in six months
The US Consumer Price Index (CPI) fell in March for the ninth consecutive month, and grocery prices fell on a monthly basis for the first time since September 2020. The Bureau of Labor Statistics reported that prices increased by 5% for the 12 months ending in March, down from 6% in February.
This was the lowest annual CPI rate since May 2021, partly due to year-over-year comparisons to a period when food and energy prices spiked due to Russia’s invasion of Ukraine.
While there was a monthly increase of 0.1% in the index, which measures price changes over time for a basket of goods, this was lower than the 0.4% increase in February.
The food at home index dropped 0.3% for the month, with lower prices for eggs and fruits and vegetables. Economists had predicted a 5.2% annual increase and a 0.2% monthly gain.
Core CPI, which excludes food and energy, grew 0.4% for the month, with an annual growth rate of 5.6%. While price pressures seem to be lessening, core inflation accelerated to the highest rate since May 2021, and this is above the central bank’s 2% target. The Federal Reserve is closely monitoring CPI, as part of its efforts to combat inflation through monetary tightening and interest rate hikes.
Consumer price inflation in Pakistan recorded at 35.37% in March 2023
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