US annual consumer inflation eases to 2.4% in March, below forecast

By Tuba Ongun

US consumer inflation eased to 2.4% in March, slightly below the market forecast of 2.5%, according to preliminary data released on Thursday.

The reading eased from 2.8% in February, the Labor Department's Bureau of Labor Statistics said in a statement.

On a monthly basis, the Consumer Price Index decreased by 0.1%, reversing February's 0.2% increase and defying market expectations of a 0.1% rise.

In March, the energy index fell by 2.4%, driven primarily by a 6.3% decline in gasoline prices, which outweighed increases in the electricity and natural gas indexes.

Meanwhile, the food index rose by 0.4%, with the cost of food at home increasing by 0.5% and food away from home rising by 0.4% during the same period.

Core CPI, which excludes volatile food and energy prices, rose by 0.1% in March compared to the previous month, falling short of market expectations of a 0.3% increase and slowing from February's 0.2% rise.

Annually, core inflation climbed to 2.8% in March, marking the smallest annual increase since March 2021.

"The energy index decreased 3.3% for the 12 months ending March. The food index increased 3.0% over the last year," it said.