Consumer Prices in U.S. Fall 0.3%, First Decline in a Year

The cost of living in the U.S. declined in March for the first time since February 2016, showing inflation is moving up only gradually, a Labor Department report showed Friday.

The decline -- reflecting cheaper motor vehicles, wireless phones services and apparel -- interrupts a recent pickup in inflationary pressures. Businesses have been regaining some pricing power on the heels of improving global demand and steady sales in the U.S. The Federal Reserve’s preferred gauge of inflation, a separate figure that’s based on what consumers purchase, exceeded its 2 percent goal in February, though some officials focus on the measure excluding food and energy, which is still below their target. The year-over-year gain in the March core CPI was the smallest since November 2015.