US consumer inflation significantly eases to 5% in March

ISTANBUL

The annual consumer inflation in the US came in at 5% in March, significantly easing from 6% in February, according to official figures released Wednesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, also came below the market estimate of 5.2%.

The figure was the smallest 12-month increase since the period ending May 2021, while it marked a sharp decline from June's 9.1% yearly gain, the largest since November 1981.

On a monthly basis, CPI rose 0.1% in March from the previous month, also coming below the market expectation of 0.2%. The figure for January was unrevised at 0.4%.

"The energy index decreased 6.4 percent for the 12 months ending March, and the food index increased 8.5 percent over the last year," the Labor Department said in a statement.

Core CPI, which excludes food and energy, gained 0.4% in March from the previous month, coming in line with the market estimate. February's reading was unrevised at 0.5%.

Annually, core CPI rose 5.6% in March, also in line with market expectations, after it rose 5.5% in February year-on-year.

President Joe Biden said the report shows continued progress in the fight against inflation.

"Inflation has now fallen by 45% from its summer peak. Gas prices are down more than $1.40 from the summer, and grocery prices fell in the month of March for the first time since September 2020," he said in a statement released by the White House.

Biden noted there have been price declines for other items like used cars, smartphones and other electronics in recent months.

"While inflation is still too high, this progress means more breathing room for hard-working Americans – with wages now higher than they were 9 months ago, after accounting for inflation," he added.