Inflation Worsens in March, Gas and Rent Costs Rise

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2 percent
in March on a seasonally adjusted basis after rising 0.8 percent in February,
the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,
the all items index increased 8.5 percent before seasonal adjustment.

Increases in the indexes for gasoline, shelter, and food were the largest
contributors to the seasonally adjusted all items increase. The gasoline
index rose 18.3 percent in March and accounted for over half of the all items
monthly increase; other energy component indexes also increased. The food index
rose 1.0 percent and the food at home index rose 1.5 percent. 

The index for all items less food and energy rose 0.3 percent in March following
a 0.5-percent increase the prior month. The shelter index was by far the biggest
factor in the increase, with a broad set of other indexes also contributing,
including those for airline fares, household furnishings and operations, medical
care, and motor vehicle insurance. In contrast, the index for used cars and
trucks fell 3.8 percent over the month.

The all items index continued to accelerate, rising 8.5 percent for the 12
months ending March, the largest 12-month increase since the period ending
December 1981. The all items less food and energy index rose 6.5 percent, the
largest 12-month change since the period ending August 1982. The energy index
rose 32.0 percent over the last year, and the food index increased 8.8 percent,
the largest 12-month increase since the period ending May 1981. 

Food

The food index increased 1.0 percent in March as the food at home index increased
1.5 percent over the month. All six major grocery store food group indexes increased
in March. The largest increase was for other food at home which increased
2.0 percent over the month. The index for fruits and vegetables rose 1.5 percent
following a 2.3-percent increase in February. 

The index for meats, poultry, fish, and eggs increased 1.0 percent in March, while the
index for cereals and bakery products rose 1.5 percent and the index for nonalcoholic
beverages increased 1.2 percent over the month. The dairy and related products index
also increased 1.2 percent in March.

The food away from home index rose 0.3 percent in March, a smaller increase than in
recent months. The index for full service meals rose 0.7 percent over the month, in
contrast to the index for limited service meals which declined 0.2 percent, its first
decrease since October 2018. 

The food at home index rose 10.0 percent over the last 12 months, the largest 12-month
increase since the period ending March 1981. The index for meats, poultry, fish, and
eggs increased 13.7 percent over the last year as the index for beef rose 16.0 percent.
The other major grocery store food group indexes also rose over the past year, with
increases ranging from 7.0 percent (dairy and related products) to 10.3 percent
(other food at home). 

The index for food away from home rose 6.9 percent over the last year, the largest
12-month increase since December 1981. The index for full service meals rose
8.0 percent over the last 12 months, and the index for limited service meals rose
7.2 percent. The index for food at employee sites and schools, in contrast, declined
30.5 percent over the past 12 months, reflecting widespread free lunch programs.

Energy

The energy index rose 11.0 percent in March following a 3.5-percent increase in
February. The gasoline index rose sharply in March, increasing 18.3 percent after rising
6.6 percent in February. (Before seasonal adjustment, gasoline prices rose 19.8 percent
in March.) The index for electricity increased 2.2 percent in March, while the index for
natural gas rose 0.6 percent over the month.

The energy index rose 32.0 percent over the past 12 months with all major energy
component indexes increasing. The index for gasoline rose 48.0 percent over the last year
and the index for natural gas rose 21.6 percent. The index for electricity rose
11.1 percent for the 12 months ending March.

All items less food and energy

The index for all items less food and energy rose 0.3 percent in March. The shelter index
increased 0.5 percent in March and accounted for nearly two thirds of the monthly increase
in the all items less food and energy index. The rent index increased 0.4 percent in March
as did the owners’ equivalent rent index. The index for lodging away from home rose
3.3 percent over the month after rising 2.2 percent in February.

The index for airline fares rose 10.7 percent in March, after rising 5.2 percent in
February. The household furnishings and operations index rose 1.0 percent over the month,
the eighth consecutive increase in that index. The index for motor vehicle insurance
increased 0.7 percent in March, and the index for apparel rose 0.6 percent in March.
The index for recreation increased 0.2 percent, and the index for personal care
increased 0.5 percent over the month.

The medical care index increased 0.5 percent in March. The index for physicians’
services also increased 0.5 percent over the month, while the index for hospital
services rose 0.4 percent. The index for prescription drugs fell 0.2 percent in
March, after rising 0.3 percent in February.

The index for new vehicles increased 0.2 percent in March after rising 0.3 percent
the previous month. The index for used cars and trucks fell 3.8 percent in March,
its second consecutive monthly decline after a series of large increases. The index
for communication was also among those few indexes which declined over the month,
falling 0.5 percent.

The index for all items less food and energy rose 6.5 percent over the past 12 months,
with virtually all of its major component indexes rising over the span. The shelter
index rose 5.0 percent over the last 12 months, its largest 12-month increase since May
1991. The index for household furnishings and operations increased 10.1 percent over
the past year, its largest 12-month increase since the period ending July 1975.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 8.5 percent over the
last 12 months to an index level of 287.504 (1982-84=100). For the month, the index
increased 1.3 percent prior to seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased
9.4 percent over the last 12 months to an index level of 283.176 (1982-84=100). For the
month, the index rose 1.5 percent prior to seasonal adjustment.  

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 8.1 percent
over the last 12 months. For the month, the index increased 1.2 percent on a not
seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are
subject to revision.