LOC21:28
18:28 GMT
WASHINGTON, April 26 (KUNA) -- Inflation in the US rose by 2.8 percent in March on a yearly basis, exceeding forecast of economists, the Department of Commerce said Friday.
From the preceding month, the PCE price index for March increased 0.3 percent (table 5), according to data issued by the department.
Prices for services increased 0.4 percent and prices for goods increased 0.1 percent. Food prices decreased less than 0.1 percent and energy prices increased 1.2 percent, it noted. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.
From the same month one year ago, the PCE price index for March increased 2.7 percent (table 7). Prices for services increased 4.0 percent and prices for goods increased 0.1 percent, according to the data.
Food prices increased 1.5 percent and energy prices increased 2.6 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago, it stated.
"We're moving in the wrong direction, again, on the inflation story," Ben Ayers, Nationwide's senior economist, told CNN in an interview.
Inflation has cooled significantly from the decades-high levels seen in the summer of 2022; however, progress that was made last year did not continue into 2024. While rising gas prices played their role, the biggest bogeyman to lower inflation has been shelter costs and overall services, where price hikes tend to be more "sticky."
The report follows bad inflation news from Thursday and likely locks the Fed into holding the line on interest rates through at least the summer unless there is some substantial change in the data.
The Department reported Thursday that PCE in the first quarter accelerated at a 3.4 percent annualized rate while gross domestic product increased just 1.6 percent, well below Wall Street expectations. (end)
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