The
Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2% in March (+1.1%
expected)
after rising 0.8% in February. Increases in the indexes for gasoline, shelter,
and food were the largest contributors to the seasonally adjusted all-items
increase. The gasoline index rose 18.3% in March and accounted for over half of
the all-items monthly increase; other energy component indexes also increased.
The food index rose 1.0% and the food at home index rose 1.5%.
The
index for all items less food and energy rose 0.3% in March following a 0.5%
increase the prior month. The shelter index was by far the biggest factor in
the increase, with a broad set of other indexes also contributing, including
those for airline fares, household furnishings and operations, medical care,
and motor vehicle insurance. In contrast, the index for used cars and trucks
fell 3.8% over the month.
The
all-items index continued to accelerate, rising 8.5% for the 12 months ending
March, the largest 12-month increase since the period ending December 1981. The
all items less food and energy index rose 6.5%, the largest 12-month change
since the period ending August 1982. The energy index rose 32.0% over the last
year, and the food index increased 8.8%, the largest 12-month increase since
the period ending May 1981.
The
Producer Price Index for final demand increased 1.4% in March (+1.1% expected).
This rise followed advances of 0.9% in February and 1.2% in January. On an
unadjusted basis, final demand prices moved up 11.2% for the 12 months ended in
March, the largest increase since 12-month data were first calculated in
November 2010.
In
March, the rise in the index for final demand was led by a 2.3% advance in
prices for final demand goods. The index for final demand services increased
0.9%.
Prices
for final demand less foods, energy, and trade services moved up 0.9% in March,
the largest advance since rising 1.0% in January 2021. For the 12 months ended
in March, the index for final demand less foods, energy, and trade services
increased 7.0%.
Final Demand
Final
demand goods: The index for final demand goods rose 2.3% in March, the same as
in February. Over half of the broad-based advance in March can be traced to a
5.7% jump in prices for final demand energy. The indexes for final demand goods
less foods and energy and for final demand foods also moved higher, 1.1% and
2.4%, respectively.
Product
detail: Leading the March increase in the index for final demand goods, diesel
fuel prices jumped 20.4%. The indexes for gasoline, fresh and dry vegetables,
jet fuel, iron and steel scrap, and electric power also moved higher. In
contrast, prices for beef and veal fell 7.3%. The indexes for natural gas and
for cold rolled steel sheet and strip also declined.
Final
demand services: Prices for final demand services moved up 0.9% in March
following a 0.3% increase in February. Over 40% of the March advance can be
traced to a 1.2% rise in margins for final demand trade services. (Trade
indexes measure changes in margins received by wholesalers and retailers.)
Prices for final demand transportation and warehousing services and for final
demand services less trade, transportation, and warehousing also moved higher,
climbing 5.5% and 0.3%, respectively.
Product detail: A 22.7% jump in margins for fuels and lubricants retailing was a major factor in the March advance in prices for final demand services. The indexes for truck transportation of freight; traveler accommodation services; airline passenger services; inpatient care; and hardware, building materials, and supplies retailing also increased. Conversely, prices for securities brokerage, dealing, and investment advice decreased 5.4%. The indexes for portfolio management and for automobile retailing (partial) also moved lower.
The not-seasonally adjusted price indexes we track all advanced on both a MoM and YoY basis.
The foregoing comments represent the
general economic views and analysis of
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