Prices for goods and services rose 5% YoY in March, the lowest level since May 2021 and down from 6% in February, according to the Department of Labor.
- While consumers saw lower prices for groceries, gas, and utilities, they paid more for things like rent, flights, and car insurance.
- But inflation remains relatively high compared to the pre-pandemic 2.1% average and the Federal Reserve's 2% target, which means an interest-rate increase is still on the table for as soon as next month.
"We need to see moderation in price pressures across staples of the household budget: shelter, food, electricity, vehicle insurance, apparel, and household furnishings,” Greg McBride, chief financial analyst at Bankrate, told Seeking Alpha.
Gimme a hand: Retailers are still raising prices to pass on higher commodity costs to shoppers; consumers around the world are paying more for groceries this year than they did last year. Investors are keeping a close eye on the standoff between retailers and consumer goods manufacturers.
- In January, Whole Foods asked its suppliers to lower costs as inflation eases.
- Walmart CEO Doug McMillon said the retailer is ready to give private-label and cheaper brands more shelf space if suppliers can’t help bring down costs.
+1: In an interesting shift, however, restaurant-related inflation (+0.6% from February) outpaced home food inflation (-0.2% from February) for the first time in more than a year.
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