High inflation in the US has eased more than expected. In March, consumer prices rose by 5.0 percent compared to the same month last year, the Department of Labor announced in Washington on Wednesday. It is the lowest increase since May 2021. Analysts had expected the inflation rate to fall to 5.1 percent on average. In February, the rate was still 6.0 percent.
Month-on-month, consumer prices rose 0.1 percent in March. Here 0.2 percent had been expected.
The core inflation rate, on the other hand, rose to 5.6 percent, as expected. In February it was still 5.5 percent. Core inflation eliminates volatile energy and food prices.
Inflation data are in focus because they are of great importance for the monetary policy of the US Federal Reserve. Most recently, the financial markets were expecting a key interest rate increase of 0.25 percentage points in May. But an unchanged interest rate is not ruled out either. It is still uncertain to what extent the recent banking turmoil will affect lending and inflation.
“Even if inflation is still too high, this progress means more leeway for hard-working Americans,” US President Joe Biden reacted to the new numbers. It is now necessary to further reduce the costs for families. The Democrat simultaneously attacked the Republicans in Congress, who only wanted to cut taxes on the wealthy and big businesses.
