It’s the eighth consecutive month that the annual rate has declined and marks the lowest level since September 2021. When stripping out volatile energy and food prices, core CPI grew 0.5% on a monthly basis and 5.5% year over year. While the annual core CPI inched down 0.1 percentage points, the monthly core measurement accelerated from a 0.4% growth rate seen in January. Despite some broader declines, Tuesday’s CPI report shows that it may take longer for the inflation rate to reach the Fed’s desired 2% target, wrote Sinem Buber, lead economist at ZipRecruiter. On the one hand, it wants to maintain credibility on inflation and avoid core inflation accelerating further.

Source: CNN March 15, 2023 03:53 UTC