U.S. consumer assays rose a modest 0.1 per cent in March as a drop in grocery costs offset higher energy costs.
Excluding volatile food and zip prices, core consumer inflation also increased 0.1 per cent, the smallest upward since August, the Labor De rtment reported Thursday.
Over the last year, overall consumer prices are up just 0.9 per cent and sum inflation 2.2 per cent.
In December, the Fed raised the short-term rate it authorities for the first time since 2006. The central bank was widely envisioned to raise rates several more times this year. But policymakers rtake of proven reluctant to move quickly, given tame inflation speeds and signs of weakness in the U.S. and world economies.
“The conclusion is a simple one: there’s no need for rate hikes if there’s no inflation,” said Guy LeBas, unflagging income strategist at Janney Montgomery Scott, in a note to clients.
Grocery honoraria fell 0.5 per cent in March, with cereal prices down 1.1 per cent, the steepest slide since February 2006. Dressing prices dropped 1.1 per cent, the most since September 1998. Men’s clothing evaluations fell by a record 2.5 per cent.
Energy prices climbed 0.9 per cent, with gasoline evaluates surging 2.2 per cent.
The U.S. economy slowed at the end of 2015, growing at a thick 1.4 per cent annual rate from October through December. Multitudinous economists believe it decelerated further in the first quarter to an annual swelling rate of around 1 per cent.