According to data from the Bureau of Labor Statistics released on Wednesday, U.S. headline inflation decreased more than expected in March. The consumer price index for the month fell to 5.0% on an annual basis, down from 6.0% in February. Economists had projected that the reading would fall to 5.2%.
The monthly rate inched down to 0.1% from 0.4%, which is lower than the expected growth of 0.2%. However, the core number, which excludes volatile items such as food and energy, slightly increased to 5.6% from 5.5% annually. The monthly rate slipped to 0.4% from 0.5%, in line with expectations.
The decrease in the CPI may indicate that inflation could be stabilizing after months of steady increases. However, economists remain cautious, noting that the current CPI levels are still high and could continue to put pressure on the economy.
The Federal Reserve has been closely monitoring inflation data, and this latest report is likely to be taken into account as they decide whether to maintain or adjust their monetary policy.
