March CPI

The Consumer Price Index (CPI) for March 2023 was released on April 12, 2023. The CPI measures the change in prices paid by urban consumers for a basket of consumer goods and services. The all items index rose 0.2% in March on a seasonally adjusted basis, following a 0.4% increase in February. Over the last 12 months, the all items index increased 5.2%, the largest 12-month increase since August 2008. The largest contributors to the March increase in the all items index were shelter, food, and transportation. The shelter index increased 0.4% in March, with the largest increases in the indexes for rent, owners' equivalent rent, and lodging away from home. The food index increased 0.3% in March, with the largest increases in the indexes for food at home and food away from home. The transportation index increased 0.7% in March, with the largest increases in the indexes for gasoline and airfares. The core CPI, which excludes food and energy prices, rose 0.3% in March on a seasonally adjusted basis, following a 0.5% increase in February. Over the last 12 months, the core CPI increased 4.6%, the largest 12-month increase since November 1991. The March increase in the core CPI was driven by increases in the indexes for shelter, medical care, and transportation. The shelter index increased 0.3% in March, with the largest increases in the indexes for rent and owners' equivalent rent. The medical care index increased 0.4% in March, with the largest increases in the indexes for hospital services and prescription drugs. The transportation index increased 0.4% in March, with the largest increases in the indexes for gasoline and airfares. The March CPI data suggest that inflation remains elevated, but may be moderating somewhat. The core CPI increase was smaller than the headline CPI increase, and the 12-month increase in the core CPI was the smallest since November 1991. However, inflation is still well above the Federal Reserve's target of 2%. The Fed is expected to raise interest rates several times this year in an effort to cool inflation.