· During
March, the consumer price index (CPI-U) rose an expected 0.3%
after having been unchanged in February. Less food & energy,
consumer prices rose 0.2% and that also was as expected. A Comparison
of Measures of Core Inflation from the Federal Reserve Bank of New
York can be found here.
· Energy prices were quite firm last month and they rose 1.9% overall, the strongest increase since last November. Fuel oil prices led the strength with a 7.9% (40.2% y/y) rise while natural gas & electricity prices also were strong. They rose 1.9% (4.1% y/y). Gasoline prices increased 1.3% (26.0% y/y) and in April already have increased another 3.6%.
· Inflation of food
& beverage prices remained moderate at 0.2% due to continued
softness in prices for meats poultry & fish which were unchanged m/m
(3.7% y/y). That followed a slight decline in February. Conversely,
prices for cereal & bakery products remained strong and rose 1.3%
(8.1% y/y). Earlier strength in dairy products took a breather m/m and
they fell 0.8% (+11.0% y/y).
· Core goods prices posted the second consecutive 0.1% m/m decline. Apparel prices fell 1.3% (-1.3% y/y) but prices for household furnishings & operations rose 0.5% (-0.2% y/y). March prices for new & used motor vehicles fell 0.1% (-0.0% y/y).
· Stable Prices, Stable Economy: Keeping Inflation in Check Must be No. 1 Goal of Monetary Policymakers from the Federal Reserve bank of St. Louis is available here.