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