ARLINGTON, Va.—Overall consumer prices fell 0.1% in March – the first decrease in 10 months.
NAFCU Chief Economist and Vice President of Research Curt Long attributed the decrease to falling gas prices, which dropped 4.9% in March. Long also noted that inflation stayed on trend.
Gas prices, however, are expected to rise in the coming weeks as the price of crude oil has been on the increase, according to analysts.
"Core inflation, lifted by higher rents and medical care costs, maintained trend with 0.2% growth in March," Long said in a NAFCU Macro Data Flash report. "However, used car prices fell for the second month, while tuition and childcare costs decreased for the first time since 2000.
"Inflation is expected to pick up this year in light of a tightening labor market, tax stimulus, a weaker dollar and potential tariffs," Long concluded.
On a year-over-year basis, the Consumer Price Index (CPI) increased 2.4% – a 12-month high.
Data published by the Bureau of Labor Statistics show that core prices (excluding food and energy costs) increased 0.2% in March compared to the previous month. Year-over-year core CPI growth accelerated to 2.1%.
Energy prices fell 2.8% in March, following a 0.1% increase in February. From a year ago, energy prices were up 7%. Food prices increased 0.1% in March; year-over-year growth of food prices decelerated to 1.3%, noted Long.