US Inflation Eases to 5%, Lowest Since 2021

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Facts

• The US Labor Dept. reported Wednesday that the consumer price index (CPI), a key measure of US prices, rose 0.1% in March and 5% since last year, less than Dow Jones estimates and its slowest pace since 2021.¹
• Egg prices fell 10.9% — the largest month-to-month decline recorded in 36 years and down from 70.1% in January, but still 36% higher compared to one year ago — helping offset other rising food prices and bringing total grocery prices down 0.3%.²
• However, core inflation — which excludes volatile energy and food prices — has remained steady at 5.6% over the last year compared to February’s 5.5%, signaling that lower gas prices, in contrast to record highs last year, may have driven the slower pace of total inflation.³
• Meanwhile, because most apartment rents are fixed, rent prices tend to be less volatile than other categories, with the Bureau of Labor Statics (BLS) reporting rental data every six months. Because of this, rent costs take longer than other categories to reflect market changes.⁴
• To combat inflation, the Federal Reserve (Fed) has made nine interest rate hikes since March of last year, with some analysts predicting that the latest numbers could potentially contribute to a pause in further increases at the Fed's upcoming meeting on May 2-3.⁵

Sources: ¹CNBC, ²The hill, ³Guardian, ⁴CNN and ⁵Forbes.

Narratives

• Republican narrative, as provided by Daily Mail. While a welcomed sign, inflation is still way too high, and American families are struggling to stay afloat. Democrats have neither answers nor solutions: Their tax-and-spending policies only worsen the economic burden on families, yet Biden wants taxpayers to foot the bill for his $6.9T budget spree that will send inflation soaring even higher.

Predictions