U.S CPI Declined by 0.2% in March – April Report

The Bureau of Labor Statistics published its recent report of the U.S CPI for March 2013. Based on the recent report, the consumer price index declined for the first time this year; in annual terms the US CPI increased by 1.5%. The consumer price index sans food and energy edged up by 0.1% during March and by 1.9% in the past twelve months.   

The prime reason for the decline in the U.S. consumer price index was related to the drop in the energy prices: the energy index tumbled down by 2.6% (M-2-M) during the month; in annual terms the energy index decreased by 1.6%; among the energy products, the gasoline led the fall with a 4.4% tumble during last month. On the other hand, the food index remained unchanged during the month. During the past twelve months, the food index rose by 1.5%.

The core U.S inflation (CPI sans energy and food) inched up by 0.1% during March and by 1.9% during the past 12 months. These figures coincided with the recent U.S PPI report, in which the core PPI rose by 0.2% during last month.

In the previous monthly report for February 2013 CPI also rose by 0.7% and the core CPI inched up by 0.2% (M-2-M).

The recent decline the CPI may ease the concerns regarding the potential inflationary pressures from the Fed’s asset purchase program. Even the core CPI hasn’t increased passed the 2% mark during the past twelve months, which is another indicator for the stability of U.S prices. This report could pull down the prices of gold and silver.

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