Inflation fee falls for ninth straight month, however some areas hit more durable amid recession fears

Inflation eased in March however remained excessive, particularly in states looming as battlegrounds in subsequent yr’s presidential election.

Prices rose at an annual fee of 5% final month, the Bureau of Labor Statistics mentioned Wednesday, down a full share level from the 6% annual fee in February. The inflation fee fell for the ninth straight month and is down from final June’s peak of 9.1%, however continues to be greater than 3 times larger than the 1.4% fee when President Biden took workplace.

In some key states that will probably be up for grabs in 2024, costs stay a lot larger than the nationwide common.

The personal-finance web site WalletHub reported that costs within the Phoenix-Scottsdale area of Arizona rose 8.5% in March, yr over yr. Inflation within the Tampa, Florida, area was 7.7%, and costs within the Atlanta metropolitan space got here in 7.2% larger. In the Detroit metropolitan space, inflation was 7%. It got here in at 6.9% in Philadelphia. The website in contrast BLS information for 22 metropolitan areas.

And the core month-to-month inflation index, which is much less more likely to drop as a result of it omits risky meals and gasoline costs, truly elevated barely to five.6% in comparison with February’s 5.5%. A big a part of the general inflation cooldown has come from falling power costs.

Online grocery costs have been up 10.3% in March from the earlier yr, based on the Adobe Digital Price Index.

Stocks fell Wednesday, regardless of the declining inflation fee, as buyers weighed minutes from the Federal Reserve’s March coverage assembly that confirmed officers worrying a couple of gentle recession by the tip of the yr. 

The Dow Jones Industrial Average fell 38 factors or 0.1% to shut at 33,646.

Mr. Biden, who’s on a visit to Ireland, hailed the inflation report as excellent news however mentioned his administration has extra work to do.

“Today’s report shows continued progress in our fight against inflation with the 12-month inflation rate at the lowest level since May 2021,” Mr. Biden mentioned. “While inflation is still too high, this progress means more breathing room for hard-working Americans – with wages now higher than they were 9 months ago, after accounting for inflation.”

Republicans stay far much less optimistic than Mr. Biden in regards to the state of the economic system.

“Inflation is up, wages are down, and Americans are struggling to stay afloat in Biden’s failed economy,” Republican National Committee Chairwoman Ronna McDaniel mentioned. “Democrats have neither answers nor solutions – their policies only worsen the economic burden on families, yet Biden wants taxpayers to foot the bill for his $6.9 trillion tax-and-spending spree that will send inflation soaring even higher.”  

Sen. Ted Cruz, Texas Republican, mentioned the inflation report confirmed “24 months in a row of negative real wages.”

“The American people are sick of Biden’s economy,” he tweeted.

Mr. Biden mentioned his administration is “continuing to fight to lower costs for families.” He cited actions to cap insulin prices at $35 monthly for seniors and permit Medicare to barter decrease costs. He additionally touted his efforts to spice up home manufacturing and unfold good-paying jobs all through the U.S.