United States: Annual inflation falls to one-year low
April 13, 2012
In March, consumer prices added 0.3% over the previous month in seasonally adjusted terms, which was below the 0.4% rise recorded in February, but in line with market expectations. The monthly price rise was mainly driven by a sharp increase in energy prices, in particular for fuel oil. Despite the monthly increase, annual headline inflation fell from 2.9% in February to 2.7%, which marks its lowest level in a year. Meanwhile, the closely monitored core inflation index, which excludes food and energy, added a milder 0.2% over the previous month. As a result, annual core inflation remained unchanged at February's 2.2%. Annual average inflation over the previous 12 months remained unchanged at February's 3.3%. In its latest forecast, the Federal Reserve expects PCE inflation (based on the price index for personal consumption expenditures) to average between 1.4% and 1.8% this year.