Macedonia's annual inflation slows in March

Macedonia's annual inflation slows in March

Macedonia's annual inflation slows in March

U.S. consumer inflation dipped in March amid plunging gasoline prices, but the annual rate rose, suggesting a long-awaited uptick in price pressures could be drawing near, the Labour Department reported on Wednesday (Apr 11).

On a monthly basis, inflation increased 1 percent in March to record 269.8 points, compared to 267 points in February, CAPMAS said.

Natural gas prices also fell 1.2 per cent, and fuel oil dropped 0.7 per cent in March.

Over the last 12 months, inflation is running at a rate of 2.4 percent.

The Egyptian government expected inflation to decline by the end of this fiscal year (FY) from 17 percent to 13 percent, according to Minister of Finance Amr el-Garhy.

Excluding the volatile food and energy components, the CPI climbed 0.2 per cent, matching February's increase.

The CPI drop surprised analysts who had predicted a 0.1 per cent increase. Fed Chairman Jerome Powell said last week that 12-month inflation readings "should move up notably this spring" because of the fading of weakness from a year earlier.

The March consumer price index dipped 0.1% in March, but year-over-year, it was up to 2.4% from 2.2% in the prior month. That measure-the price index for personal consumption expenditures-shows inflation continues to run below the Fed's target but is not far off.

"This suggests to us that the Fed's preferred core PCE price inflation rate will be running at 2.0 percent by the June report, if not sooner", said John Ryding, chief economist at RDQ Economics in NY. For now the Fed has penciled in three rate increases for 2018.

The drop owed entirely to a temporary decline in gasoline prices.

The cost of other major household expenses such as rent and medical care rose more sharply, however, as did prices for plane flights and auto insurance.

A separate report, also released Wednesday by the Labor Department, showed average hourly earnings adjusted for inflation rose 0.4 percent from March 2017. Owners' equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, increased 0.3 per cent last month after climbing 0.2 per cent in February.

Alcoholic beverages and tobacco prices went up by 1.9% y/y.

Prices for new motor vehicles and recreation were unchanged last month.

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