Consumer prices in the U.S. increase to close out the first quarter of the year on rising food and gas prices, although core inflation remained at a tame level that will likely support continued support of the economy, according to Reuters. On Friday, the Labor Department reported that the consumer price index for the U.S. increased by 0.5% in March from the previous month after rising by the same amount in February. The gain was in line with economists’ expectations, and pushed overall price growth up to 2.7% year-over-year, which is the largest such figure since December 2009.
Core inflation added only 0.1% in March, which was slower than the 0.2% prediction from economists that matched the increase seen in the core index during the prior month. David Wyss of Standard & Poor’s said that the Federal Reserve “is not going to see inflation as a threat so they have the freedom to keep interest rates low longer.” However, Wyss noted, “Core inflation is creeping up from its lows six months ago,” with the annual core inflation recorded at 1.2% in March from 1.1% the prior month, which indicates that the second round of economic stimulus from the central bank will not be extended.