U.S. Consumer Prices Unexpectedly Edge Down 0.1% In March

(RTTNews) - The Labor Department released a report on Thursday unexpectedly showing a slight decrease by U.S. consumer prices in the month of March.

The report said the consumer price index edged down by 0.1 percent in March after rising by 0.2 percent in February. Economists had expected consumer prices to inch up by 0.1 percent.

The Labor Department also said the annual rate of consumer price growth slowed to 2.4 in March from 2.8 percent in February. Economists had expected the pace of price growth to slow to 2.6 percent.

"The March CPI was stale data even before it was released given the large tariff changes in motion and the inflationary impact it will have in the coming months," said Nationwide Chief Economist Kathy Bostjancic.

She added, "While it is marginally helpful to have a softer reading heading into the ratcheting up of tariffs, many of the categories that experienced a decline or were tame will face upward pressure in the coming months."

The unexpected modest monthly decrease by consumer prices partly reflected a steep drop by energy prices, which tumbled by 2.4 percent in March following a 0.2 percent increase in February.

The Labor Department said a 6.3 percent plunge by prices for gasoline more than offset higher prices for electricity and natural gas.

Excluding food and energy prices, the core consumer price index crept up by 0.1 in March after rising by 0.2 percent in February. Core prices were expected to rise by 0.3 percent.

The annual rate of core consumer price growth also fell to 2.8 percent in March from 3.1 percent in February. Core price growth was expected to dip to 3.0 percent.

The monthly uptick by core consumer prices reflected higher prices for personal care, medical care, education, apparel, and new vehicles.

Meanwhile, lower prices for airline fares, motor vehicle insurance, used cars and trucks, and recreation helped limit the upside.

The Labor Department is scheduled to release a separate report on U.S. producer price inflation in the month of March on Friday.

Economists currently expect producer prices to rise by 0.2 percent in March after coming in unchanged in February, while the annual rate of producer price growth is expected to inch up to 3.3 percent from 3.2 percent.