US Inflation Fell In March With Decline In Consumer Spending
WASHINGTON – US Inflation Fell In March With Decline In Consumer Spending; The decline in the rate of inflation in the United States in March compared with the previous month as consumer prices did not register only a slight increase with the continued weakness in consumer spending, including reducing the likelihood of raising the Fed (US central bank) interest rates twice this year.
The US Department of Commerce on Friday that personal consumption expenditures price index, which excludes volatile food and energy prices rose 0.1 percent last month after rising 0.2 percent after the upward revision in February.
The increase in the index last month, in line with economists’ expectations.
In the 12 months to March, core personal consumption expenditures price index increased 1.6 percent after rising 1.7 percent in February.
The FED prefers this indicator to measure inflation remains below the level targeted by the Fed’s two percent. The bank said on Wednesday that the Monetary Policy Committee continue to monitor inflation “very closely.”
And increased consumer spending – which represents more than two-thirds of US economic activity – rose 0.1 percent in March after rising 0.2 percent, according to data adjusted to be lifted up in February. The preliminary data indicate a rise in consumer spending was 0.1 percent in February.
Taking inflation into account mentions on consumer spending in March was little changed after rising 0.3 percent in February.