March consumer prices in the United States came in weaker-than-expected dropping 0.2% in the month and compared to expectations of unchanged prices in the month. The decline followed the sizable 0.7% surge recorded in February. The lower monthly figure for March helped send the year-over-year rate down to 1.5% from the 2.0% recorded in February.
Expectations going into the report for a moderation in the monthly increase were largely premised on indications of weakening gasoline prices. This was confirmed in today’s report with this component dropping 4.4% in March after a 9.1% jump in February. This was reflected in March energy prices dropping 2.6% after a 5.4% gain in February. Food prices were much more dormant over the last two months as they were flat in March following a 0.1% increase in February.
"Excluding both the food and energy components," according to experts at RBC Economics, "the so-called core measure rose 0.1% and compared to expectations of a 0.2% rise. This increase followed a 0.2% gain in February.
"The increase in March core prices was restrained by a 1.0% decline in apparel prices along with a 0.3% drop in household furnishings. The declines helped temper gains in most other components led by a 0.6% rise in airfares. The modest monthly increase in core prices helped to send the annual rate in March slightly lower to 1.9% from 2.0% in February."
