WASHINGTON—U.S. consumer prices rose less than expected in March and underlying inflation slowed, suggesting the Federal Reserve will remain cautious about raising interest rates this year.
The Bureau of Labor Statistics reported Thursday that its Consumer Price Index gained 0.1% last month as a rebound in gasoline prices was partly offset by a drop in the cost of food. There were also slowdowns in medical care and housing costs.
The CPI fell 0.2% in February. In the 12 months through March, the CPI increased 0.9% after advancing 1.0% in February.
“Today’s report should end any doubt about the Fed's upcoming interest rate decision—there will be no rate hike in April,” said NAFCU Director of Research and Chief Economist Curt Long. “June is still a possibility, but without any urgency in the form of price growth, the Fed is free to maintain its wait-and-see approach. For the moment, overseas economies are weighing far more on monetary policy than anything happening domestically.”