U.S. Consumer Prices Rose 5% in the Year through March, a Sign Inflation Is Cooling

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in March on a seasonally
adjusted basis, after increasing 0.4 percent in February, the U.S. Bureau of Labor Statistics reported
today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment.

The index for shelter was by far the largest contributor to the monthly all items increase. This more
than offset a decline in the energy index, which decreased 3.5 percent over the month as all major
energy component indexes declined. The food index was unchanged in March with the food at home index
falling 0.3 percent.

The index for all items less food and energy rose 0.4 percent in March, after rising 0.5 percent in
February. Indexes which increased in March include shelter, motor vehicle insurance, airline fares,
household furnishings and operations, and new vehicles. The index for medical care and the index for
used cars and trucks were among those that decreased over the month.

The all items index increased 5.0 percent for the 12 months ending March; this was the smallest 12-month
increase since the period ending May 2021. The all items less food and energy index rose 5.6 percent
over the last 12 months. The energy index decreased 6.4 percent for the 12 months ending March, and the
food index increased 8.5 percent over the last year. 

Food

The food index was unchanged in March. The food at home index fell 0.3 percent over the month, the first
decline in that index since September 2020. Three of the six major grocery store food group indexes
decreased over the month. The index for meats, poultry, fish, and eggs decreased 1.4 percent in March as
the index for eggs fell 10.9 percent. The fruits and vegetables index declined 1.3 percent over the
month, and the dairy and related products index decreased 0.1 percent.

In contrast, the index for other food at home rose 0.4 percent in March, following a 0.3-percent
increase the previous month. The cereals and bakery products index increased 0.6 percent over the month,
and the nonalcoholic beverages index rose 0.2 percent. 

The food away from home index rose 0.6 percent in March, as it did in the previous 2 months. The index
for full service meals increased 0.7 percent over the month and the index for limited service meals
increased 0.5 percent. 

The food at home index rose 8.4 percent over the last 12 months. The index for cereals and bakery
products rose 13.6 percent over the 12 months ending in March. The remaining major grocery store food
groups posted increases ranging from 2.5 percent (fruits and vegetables) to 11.3 percent (nonalcoholic
beverages).

The index for food away from home rose 8.8 percent over the last year. The index for full service meals
rose 8.0 percent over the last 12 months, and the index for limited service meals rose 7.9 percent over
the same period. 

Energy

The energy index fell 3.5 percent in March after decreasing 0.6 percent in February. The gasoline index
decreased 4.6 percent in March, following a 1.0-percent increase in the previous month. (Before seasonal
adjustment, gasoline prices rose 1.0 percent in March.) The natural gas index decreased 7.1 percent over
the month, following an 8.0-percent decline in February. The index for electricity decreased 0.7 percent
in March, the largest decline in that index since January 2021.

The energy index fell 6.4 percent over the past 12 months. The gasoline index decreased 17.4 percent
over the last 12 months, while the fuel oil index fell 14.2 percent over the span. In contrast, the
index for electricity rose 10.2 percent over the last year, and the index for natural gas increased 5.5
percent over the same period. 

All items less food and energy

The index for all items less food and energy rose 0.4 percent in March after rising 0.5 percent in
February. The shelter index increased 0.6 percent over the month after rising 0.8 percent in February.
The index for rent and the index for owners' equivalent rent both rose 0.5 percent in March following
larger increases in the previous month. The index for lodging away from home increased 2.7 percent in
March. 

The shelter index was the dominant factor in the monthly increase in the index for all items less food
and energy. Among the other indexes that rose in March was the index for motor vehicle insurance, which
increased 1.2 percent, and the index for airline fares which increased 4.0 percent. The indexes for
household furnishings and operations, new vehicles, education, and apparel also increased in March. In
contrast, the index for used cars and trucks fell 0.9 percent in March, continuing a recent downward
trend. 

The medical care index fell 0.3 percent in March, after falling 0.5 percent in February. The index for
hospital services fell 0.4 percent over the month, after being unchanged in February. The index for
physicians' services continued to decline, falling 0.2 percent after declining 0.5 percent in February.
The prescription drugs index increased 0.1 percent in March. 

The index for all items less food and energy rose 5.6 percent over the past 12 months. The shelter index
increased 8.2 percent over the last year, accounting for over 60 percent of the total increase in all
items less food and energy. Other indexes with notable increases over the last year include motor
vehicle insurance (+15.0 percent), household furnishings and operations (+5.6 percent), recreation (+4.8
percent), and new vehicles (+6.1 percent). 

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 5.0 percent over the last 12 months
to an index level of 301.836 (1982-84=100). For the month, the index increased 0.3 percent prior to
seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 4.5 percent over
the last 12 months to an index level of 296.021 (1982-84=100). For the month, the index increased 0.3
percent prior to seasonal adjustment.  

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 5.1 percent over the last
12 months. For the month, the index increased 0.3 percent on a not seasonally adjusted basis. Please
note that the indexes for the past 10 to 12 months are subject to revision.