Inflation Update: Prices Rise and Fall in March

Inflation in the US moderated in March due to a decline in energy costs, but other prices soared higher last month, continuing to squeeze Americans' pocketbooks. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.4%, or 5.6% annually. Shelter costs, which account for about 40% of the core inflation increase, rose 0.6% for the month and are up 8.2% over the past year. The cost of groceries fell for the first time since September 2020, but prices remain up 8.4% compared to the same time last year. Americans saw some further reprieve last month in the form of lower energy costs, which fell 3.5% in March. Used car and truck prices fell 0.9% over the month for a 12-month decline of 11.2%. Airline fares surged again in March, with prices up 4% from the previous month.