WASHINGTON: US consumer prices ticked higher in March, lifted by a rebound in energy prices, the Labor Department reported Friday.
The consumer price index (CPI) rose 0.2 percent for the second month in a row in March, weaker than the 0.3 percent increase expected by analysts.
Year-over-year, inflation dipped back into negative territory with a 0.1 percent fall. In January inflation had turned negative for the first time since 2009.
The CPI number month-over-month was pulled higher by a 1.1 percent rise in energy prices, including a 3.9 percent jump in gasoline, and a 1.2 percent gain for used cars and trucks.
Food prices slipped 0.2 percent.
Stripping out food and energy prices, the so-called "core" CPI rose 0.2 percent from February, double the increase expected. It was up 1.8 percent from March 2014, marking a slight increase from the 1.7 percent rise for the 12 months ending February.
The inflation snapshot came as the Federal Reserve debates its first interest rate increase since 2006. The central bank has signaled it could raise the near-zero federal funds rate as early as June.
The CPI data typically runs a little higher than the Fed's preferred inflation measure, the personal consumption expenditures price index.
The core PCE price index, excluding food and energy, rose 1.4 percent in February from a year ago, well below the Fed's 2.0 percent inflation target.
Andrew Davis of Moody's Analytics said the report showed that the US economy's disinflationary woes had passed but price pressures remained weak.
"Inflation is gradually moving in the right direction but the March CPI doesn't alter our expectations for the Fed to wait until September" for the rate hike, he said.
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