Consumer Prices Post First Drop in Ten Months

The Consumer Price Index fell 0.1% in March on a seasonally adjusted basis, according to U.S. Bureau of Labor Statistics. This followed a 0.2% February increase. March’s decline was primarily due to a large drop in gasoline prices. Over the last 12 months, the all-items index rose 2.4%.

Prices for all items less food and energy, the “core CPI,” grew 0.2% in March, following a 0.2% February increase. The index rose 2.1% for the 12 months ending in March.

The food index was rose 0.1%. Prices for both food at and away from home grew 0.1%. Over the past 12 months, food prices are up 1.3%.

The energy index fell 2.8% in March after a 0.1% gain in February. Gasoline prices led the decline, slipping 4.9%. The energy index rose 7.0% in the last twelve months.

Read the BLS release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.