March CPI: Glass Half Something

Source: Economics Group of Wells Fargo Bank, N.A.Summary For the inflation optimists out there, the March CPI report delivered good news with total prices rising by the smallest amount in nine months and hints that core services inflation is starting to moderate. However, for the inflation pessimists, the latest CPI report shows the recent underlying trend in price growth remains far too high, with the core CPI increasing at more than a 5% annualized pace the past three months. Consumer prices increased just 0.1% in March. Falling prices for energy and flat prices for food helped restrain the increase in the headline index. Excluding food and energy, core consumer prices rose 0.4% in March and 5.6% over the past year. READ FULL ARTICLE>>