ARLINGTON, Va.—On a seasonally-adjusted basis, overall consumer prices fell 0.4% in March after a slight rise in February – the largest one-month drop since 2015.
The Bureau of Labor Statistics (BLS) reported that the overall consumer price index (CPI) grew 1.5% over the 12-month period.
NAFCU Chief Economist and Vice President of Research Curt Long shared concerns about data integrity, as many future releases may be compromised by widespread social distancing and the BLS moving some of its data collection efforts online, he said.
“Inflation will continue to drop due to low demand,” said Long. “Even once some level of consumer demand returns, low oil prices will work their way through the production process to keep a lid on price growth.”
Paying More to Drink at Home
New car prices fell 0.4%, hotel prices dropped 7.7%, and airline fares plummeted 12.6%. Prices on alcohol for home consumption jumped 0.7%, the largest monthly increase in over five years.
Core prices (excluding food and energy costs) declined by 0.1% in March, representing the first monthly drop since 2010. Year-over-year core CPI growth was 2.1%.
Energy prices fell for the third consecutive month, decreasing 5.8%. From a year ago, energy prices were down 5.8%. Food growth was up 1.9% on a year-over-year basis, Long said.