US Core Inflation Slows Only a Bit, Keeping Fed on Track to Hike
- Excluding food and energy, consumer prices rose 0.4% in March
- Traders still largely expect Fed to raise rates again in May
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A key measure of US inflation showed hints of moderating in March, but likely not by enough to dissuade the Federal Reserve from raising interest rates again next month.
The core consumer price index — which excludes food and energy and is closely watched by the Fed — rose 0.4% from the prior month following a 0.5% gain, in line with economists’ estimates. Yet key measures of housing costs posted the smallest monthly increases in about a year and grocery prices dropped, the report from the Bureau of Labor Statistics showed.