In March, inflation exceeded expectations, primarily due to rising housing and energy costs, according to the Labor Department's report on Wednesday.
The consumer price index (CPI) showed a monthly increase of 0.4%, matching February's rate and surpassing the anticipated 0.3% rise. Annually, the CPI climbed 3.5%, exceeding the forecasted 3.4% increase and compared to February's 3.2%.
Excluding the often volatile food and energy prices, the core index also rose by 0.4% for the month and 3.8% annually, surpassing estimates for a 0.3% monthly increase and a 3.7% annual gain.
The report highlighted increases in the shelter and gasoline indexes as major contributors to the monthly rise in the overall index. The energy index increased by 1.1% over the month, while the food index rose by 0.1% in March. The food at home index remained unchanged, but the food away from home index increased by 0.3% over the month.
These findings align with recent inflation data, indicating that while the price hikes caused by the pandemic may have eased, they have not yet completely subsided.
"Inflation has moderated, but it appears to have leveled off, and some indicators suggest it may be increasing again," said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.
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