Headline and core inflation, as measured by the consumer price index (CPI), exceeded consensus forecasts in March. During the last 12 months, headline CPI increased 1.5 percent, an acceleration from a 1.1 percent pace in February, and core CPI (which excludes food and energy) also accelerated to 1.7 percent from 1.6 percent in February. March data reflect increases in the shelter and food indexes that accounted for most of the headline increase. The energy index, in contrast, declined slightly in March as decreases in the gasoline and fuel oil indexes more than offset increases in the indexes for electricity and natural gas. Besides the 0.3 percent increase in the shelter index, the indexes for medical care, apparel, used cars and trucks, and airline fares also increased. The indexes for household furnishings and operations and for recreation both declined in March.
