US Urban Inflation Steady in March Despite Gasoline, Shelter Increases
All items index rose 3.5% over the past 12 months, BLS says
Urban inflation in the U.S. remained consistent in March with a marginal 0.4 percent increase in the Consumer Price Index for All Urban Consumers (CPI-U), mirroring February's figures, a report of the Bureau of Labor Statistics has revealed.
Over the past 12 months, the all items index rose 3.5 percent before seasonal adjustments, marking a notable uptick, BLS said.
Shelter, Gasoline Drive Increase
In March, the index for shelter costs rose, alongside gasoline prices. They contributed to about half of the monthly rise in the index for all items. The energy index also saw a 1.1 percent uptick, while the food index rose by a marginal 0.1 percent.
In February, shelter and food costs drove U.S. Inflation even though energy prices declined.
Core Items Increase
Excluding food and energy, the index for all other items saw a 0.4 percent increase in March, in line with the two previous months. Major contributors to the increase include shelter, motor vehicle insurance, medical care, apparel, and personal care. However, indexes for used cars and trucks, recreation, and new vehicles declined in the same period.
Inflation Trends
Over the 12 months leading to March, the all items index rose by 3.5 percent, surpassing February's 3.2 percent increase. The core index, excluding food and energy, increased by 3.8 percent. The energy index marked its first 12-month increase since February 2023, with a 2.1 percent uptick.
Mixed Patterns in Food Prices
Food prices showed a mixed trend in March, with the food at home index remaining unchanged, while the food away from home index witnessed a 0.3 percent increase. Notable changes include a decline in the index for cereals and bakery products, alongside a rise in the index for meats, poultry, fish, and eggs.
Varied Trends in Energy Prices
Energy prices saw diverse trends, with the gasoline index rising by 1.7 percent in March, and electricity by 0.9 percent, while the natural gas index remained unchanged. However, the fuel oil index experienced a decrease of 1.3 percent during the same period.
Shelter Costs Continue to Rise
Shelter costs maintained an upward trajectory, with the shelter index increasing by 0.4 percent in March, spearheading the overall rise in the index for all items. Notable increases were observed in rent and owners' equivalent rent, while the lodging away from home index remained relatively stable.
Healthcare Costs and Insurance Premiums Surge
Medical care costs surged in March, with the medical care index rising by 0.5 percent, driven by increases in hospital and physicians' services. Motor vehicle insurance premiums also witnessed a significant uptick, rising by 2.6 percent during the same period.
Mixed Trends in Vehicle, Recreation Costs
While the index for used cars and trucks dipped by 1.1 percent, recreation costs declined marginally by 0.1 percent. New vehicle prices also saw a slight fall of 0.2 percent, while airline fares declined by 0.4 percent.
Long-term Inflationary Trends
Over the past 12 months, various sectors saw inflationary trends, notably in shelter costs, motor vehicle insurance, medical care, recreation, and personal care, indicating a broader economic impact.
Source: BLS Press Release
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