The Bureau of Labor Statistics has released the most recent US inflation data. The March 2024 CPI data published today shows The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in March on a seasonally adjusted basis, the same increase as in February, the U.S. Bureau of Labor Statistics reported today. However, over the last 12 months, the all items index increased 3.5 percent before seasonal adjustment.
The core inflation index for all items less food and energy rose 0.4 percent in March, as it did in each of the 2 preceding months. The all items less food and energy index rose 3.8 percent over the last 12 months.
Annual inflation rate in the US accelerated for a second straight month to 3.5% in March 2024, the highest since September, compared to 3.2% in February and forecasts of 3.4%. The annual core consumer price inflation rate in the United States, which excludes volatile items such as food and energy, stood at a near three-year low of 3.8% in March 2024, matching February’s reading and slightly above market forecasts of 3.7%.
Today’s FOMC minutes from the March 19-20 meeting may shed light on the FOMC’s thinking on recent increased inflation and sustained economic resiliency.
In February, the consumer price index increased by 3.2% YoY, surpassing the January rate of 3.1%. Even the monthly CPI data showed an increase. In February 2024, the US Consumer Price Index rose by 0.4%, marking the highest increase in five months, compared to the previous month’s 0.3% increase.
The Core inflation data that excludes food and energy also showed stickiness. In February 2024, the US core consumer price inflation rate reached a nearly three-year low of 3.8% but above market forecasts of 3.7%. Further, core inflation on monthly counts also came in above expectations. US core consumer prices increased by 0.4% in February 2024, above market expectations of 0.3%
The US Fed’s efforts to control inflation have not yielded complete victory to date. Inflation in the United States is sticky and is taking its own sweet time to fall to the target of 2%.
Headline Consumer price inflation in the United States has decreased significantly, falling from a high of 9.1% year on year in June 2022 to a low of 3.5% in March 2024.
The next FOMC meeting takes place on April 30-May 1, 2024 where Fed Chair Powell’s comments during the press conference will be keenly watched by global investors.
