Much of the drop resulted from price declines for such goods as gas, used cars and furniture, which had soared a year ago after Russia’s invasion of Ukraine.
The latest inflation report was revealed this morning. It shows inflation eased slightly, but remained high last month.U.S. consumer inflation eased in March, with less expensive gas and food providing some relief to households that have struggled under the weight of surging prices but likely still keeping the Federal Reserve on track to furtherThe government said Wednesday that consumer prices rose just 0.1% from February to March, down from 0.
Price increases in the economy’s vast service sector — ranging from rents and restaurant meals to haircuts and auto insurance — are keeping core inflation high, at least for now. That trend is widely expected to lead the Fed to raise its benchmark interest rate for a 10th straight time when it meets in May.
Fed officials have projected that after one additional quarter-point hike next month — which would raise their benchmark rate to about 5.1%, its highest point in 16 years — they will pause their hikes but leave their key rate elevated through 2023. But officials have cautioned that they could raise rates further if they deem it necessary to curb inflation.
The Fed’s year-long streak of rate hikes are also starting to cool a hot labor market, with recent data showing that companies are advertising fewer openings and that wage growth has been slowing from historically elevated levels.
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