US CPI undershoots by a wide margin in March

(Sharecast News) - The cost of living in the US came in under economists' forecasts for the month of March, with inflation dragged down by a slump in energy quotes. According to the Department of Labor, in seasonally adjusted terms, the Consumer Price Index dipped by 0.1% month-on-month (consensus: 0.2%).

That served to push the year-on-year rate of advance in headline CPI down to 2.4%.

Consensus had been that inflation would slow from 2.8% to 2.6%.

Energy prices dropped by 2.4% over the month, helping to offset a 0.4% rise in food prices by a big margin.

Core CPI, which excludes food and energy prices, on account of their volatility, also undershot.

Underlying prices edged up by only 0.1% on the month (consensus: 0.3%).

The annual rate of increase in core CPI printed at 2.8% (consensus: 3.0%).

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