Economics

U.S. Core Inflation Cools Amid Shift in Data Methodology

Apparel prices fell 1.9% from the prior month, most since 1949
Energy prices climb 3.5% on month for biggest jump since 2017

Shoppers walk through the Menlo Park Mall in Edison, New Jersey, U.S., on Friday, Nov. 25, 2016. As Black Friday ushers in the year-end shopping rush, chains are touting larger price cuts than in 2015 -- a gamble that maintaining market share is worth squeezing margins.Photographer: Michael Nagle/Bloomberg

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By Katia Dmitrieva

April 10, 2019 at 12:30 PM UTC

Updated on

April 10, 2019 at 1:35 PM UTC

This article is for subscribers only.

A key measure of U.S. inflation rose less than forecast in March on a drop in apparel prices following a methodology change for data collection, offering some reinforcement for the Federal Reserve’s message of patience on interest rates.

The core consumer price index, which excludes food and energy, rose 0.1 percent from the prior month, and 2 percent from a year earlier, according to a Labor Department report Wednesday. Those readings missed both the monthly and annual estimates of economists, while the broader CPI climbed 0.4 percent as forecast and a faster-than-estimated 1.9 percent annually.