The results of the March US consumer price index report:
- Prior reading was 2.0% y/y
- In the month of March, prices fell 0.2% vs 0.0% exp
- CPI ex-food and energy 1.5% vs 1.6% exp
Inflation is in the Fed’s comfort zone but is decelerating. If the CPI continues to fall toward 1%, then disinflation may creep up the Fed’s agenda.
