Core consumer prices in the United States climbed above expectations in March, the U.S. Labor Department reported on Wednesday. Meanwhile, headline inflation fell into negative territory for the first time in over 50 years.
The seasonally-adjusted core U.S. Consumer Price Index, which excludes volatile food and energy prices, saw a 0.2% month-over-month jump in March, slightly more than the 0.1% rise expected by economists. On an annual basis, core inflation rose 1.8%, against expectations for a 1.7% rise.
Headline inflation fell 0.1% in the month, against expectations of a 0.1% rise, bringing the annual rate to -0.4%, against expectations for a -0.1% reading.
Energy prices fell 3.0% in March, resuming its downtrend after two months of increases. Compared to last year, energy prices are down 23.0%. The fall was largely due to a 4.0% drop in gasoline prices in the month.
Prices for fuels & utilities fell 1.4% in the month but are up 0.6% on the year.
Food and beverages fell 0.1% on the month and are up 4.3% year-over-year.
Prices for tobacco climbed a whopping 11.0% on the month.
The heavily-weighted commodities component dropped 0.3% from the previous month, and is down 4.2% on the year.
Owners' equivalent rent ticked up 0.2% from the previous month and is now 2.1% higher than the same period last year.
The index for housing fell 0.1% in the month and rose 1.4% on the year.
Services grew 2.7% in March. Over the year, prices for this component have moved up 5.7%.
Prices for apparel fell 0.2% in the month, following a 1.3% rise in the prior month. The annual rate of change is +1.4%.
Transportation costs fell 1.1% in the month, while annually the index declined 13.1%.
By Megan Ainscow
©CEP News Ltd. 2009