US inflation shows signs of cooling down

The US CPI rose 0.1% in March, after rising 0.4% in the previous month. The CPI rose 5.0% year-over-year in March, down from 6.0% in February and the smallest annual increase since May 2021. Excluding volatile food and energy prices, the US core CPI rose 0.4% in March, after rising 0.5% in February. The core CPI rose 5.6% year-over-year in March, after rising 5.5% in the previous month.

Gasoline prices fell 4.6%, offset by higher rents. However, they are expected to rise again after OPEC+ oil-exporting countries announced oil production cuts earlier this month. Food prices were unchanged, remaining at their lowest since November 2020, as households received relief from some supermarket products. Prices for food consumed at home fell 0.3%, the first decline since September 2020. Egg prices fell 10.9%. Meat, fruit and vegetables were also cheaper. However, prices for cereals and bakery products as well as non-alcoholic beverages all rose.

Meanwhile, services inflation showed signs of moderation. Rents, while still high, rose at their slowest pace in nearly a year. Owner equivalent rents (OER), a measure of what landlords would pay to rent or would earn from renting out a property, rose 0.5% in March, the slowest increase since April 2022 and following a 0.7% increase in February.

Slowing rent increases helped limit the pace of service cost increases to 0.3% in March from a 0.5% increase in February. Airfares rose 4.0% despite lower fuel prices. Hotel and motel rates also rose sharply. Core goods prices rose 0.2% after being unchanged in February. Prices for apparel and new motor vehicles rose, but used cars and trucks continued to decline.

According to economists , although US inflation has shown a cooling trend, it is still high compared to the Fed's target, increasing the possibility that the US central bank will continue to raise interest rates at its next policy meeting.

Ryan Sweet, chief economist at Oxford Economics, expects inflation to gradually cool but remain high for the rest of 2023, and the Fed is likely to keep interest rates high for the rest of the year. CME Group’s FedWatch tool is also leaning toward a 25 basis point rate hike at the Fed’s May 2-3 policy meeting.

VNA

Source: https://www.qdnd.vn/quoc-te/tin-tuc/lam-phat-cua-my-co-dau-hieu-ha-nhiet-724824