WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 3.3% for the 12 months ending in March, above last month’s 2.4% reading and economists’ expectations. From February to March, the inflation rate increased to 0.9% from 0.3%.
March data showed the annualized rate of inflation is above the year-earlier pace. Real average hourly earnings for all private-sector workers rose in March, up 0.3% over the past year; for middle- and lower-wage workers, gains were even lower at 0.1%.
Core inflation, which excludes volatile energy and food prices, was flat over the past month and increased slightly at a pace of 2.6% year-over-year in March, from 2.5% in February.
Energy prices increased 10.9%, and gasoline prices rose 21.2% last month due to the conflict in Iran. Used vehicle prices, however, fell in March. Prescription drug prices also decreased 1.5% in March and are down over the past year.
Patrice Onwuka, vice president for economic policy at Independent Women, issued the following statement:
“This is the first full month of the oil-price spike from the Iran conflict appearing in inflation data. Prices at the gas pump have spiked precipitously, but Americans are giving President Trump and his administration grace under the expectation that this will be a short-term conflict and for the upside of disarming Iran of nuclear weapons. Also, the oil price increases are far lower now than they were following the outbreak of the Russia-Ukraine war. We are not back in 2022.
“But there is good news. Core inflation was flat over the past month and rose a minor 0.1% over the past year. Core prices, which strip out volatile food and energy categories, are a better indicator of prices across the economy, and the trends are positive.
“Prices on day-to-day items fell in March, which provides some relief, even as Americans deal with higher energy prices. Prices on grocery basket goods are coming down: meats, poultry, fish, eggs, cereals, baked goods, and non-alcoholic beverages all declined in March. This is great for individuals struggling to feed themselves and their families. Medical care and prescription drugs also fell, with even greater savings on the horizon from President Trump’s landmark healthcare price transparency reforms. In addition, consumers seeking to use their big tax refunds to shop for used cars and trucks will also find better prices.
“All of this is a clear sign of relief from President Trump’s pro-growth, anti-inflation agenda and sustained effort to address prices in key areas.”
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