US CPI rises a tad more quickly than expected in March
By Alexander Bueso
Date: Wednesday 10 Apr 2024
(Sharecast News) - The cost of living in the U.S. rose by more than expected last month amid gains in the cost of energy, clothing and medical care services.
According to the Bureau of Labor Statistics, in seasonally adjusted terms the country's Consumer Price Index increased at a month-on-month pace of 0.4% in March.
Year-on-year, CPI was ahead by 3.5%, having risen by 3.2% during the previous month.
Economists had penciled-in a rise of 0.3% versus February, while the annual rate of increase was seen coming in at 3.5%.
Core CPI meanwhile was up by 0.4% over the month, against a consensus forecast for 0.3%.
In annual terms, core CPI was unchanged from the month before at 3.8%, whereas expectations had been for it to tick lower by a tenth of a percentage point.
"Alongside the pick-up in monthly payroll employment gains, the third consecutive 0.4% m/m rise in core CPI pretty much kills off hopes of a June rate cut from the Fed," said Paul Ashworth, chief North America economist at Capital Economics.
"Financial markets are not going to like the above-consensus gain in the headline and core CPI," chipped in Ryan Sweet, chief US economist at Oxford Economics.
"Some tightening in financial market conditions may do some of the work for the Fed, allowing it to sit on its hands potentially longer than we anticipate."
-- More to follow --
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