Inflation, the rate at which prices for goods and services increase, has been a hot topic in the economy over the last few years. The latest report shows that inflation slowed to 5% in March 2023, a nearly 2-year low, but core consumer price gains have accelerated.
The Consumer Price Index (CPI), a measure of the average change in prices over time for a basket of goods and services commonly purchased by households, increased by 0.3% in March 2023. This is less than the 0.5% increase in February and marks the slowest increase since April 2021.
However, the core CPI, which excludes volatile items such as food and energy, increased by 0.6% in March, the biggest increase since October 2021.
While the slowdown in overall inflation may seem like good news for consumers, it is important to look at the bigger picture. The 5% inflation rate is still higher than the Federal Reserve's target of 2%, and the acceleration in core consumer prices indicates that inflation may continue to rise in the coming months.