New York-US consumer inflation slowed in March, according to data released Wednesday, but remained well above the Federal Reserve’s target despite numerous interest rate hikes over the last year. The rate of inflation year-over-year fell to 5.0 percent last month from 6.0 percent in February, the smallest 12-month increase since May 2021, according to the Bureau of Labor Statistics. The report showed a 0.1 percent increase in March over the prior month on a seasonally adjusted basis, much lower than the 0.4 percent reading in February and below analyst expectations as well. Although greeted by President Joe Biden as a sign of progress, several commentators noted the inflation rate is far above the US central bank’s two percent target, adding that inflation remained elevated when food and energy costs were stripped out. “The good news is that inflation continues to trend down, with prices increasing at their slowest pace since April 2021,” said Neil Saunders, managing director of GlobalData Retail. “However, this is not a complete win as prices are still going up,” Saunders added. “This means many households continue to make choices about what and how to buy in order to balance their budgets. Inflationary behaviors are still prevalent among Americans.” Analysts still expect the Fed to hike interest rates again next month, albeit by just a quarter percentage point, smaller than several recent increases.
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The Nation, 14 Apr, 2023