U.S. consumer prices record largest drop in five years

U.S. consumer prices record largest drop in five years

Underlying inflation fell in March also as prices for new motor vehicles declined.. In the 12 months through March, the core CPI rose 2.1% after increasing 2.4% in February.. The core PCE price index increased 1.8% on a year-on-year basis in February after rising 1.7% in January.. With some components in the producer price index report that feed into the core PCE price index weakening in March, economists expect inflation pulled back last month.. Food prices rose 0.3% last month after surging 0.4% in February.. Prices for food consumed at home increased 0.5%, matching February's gain.. Apparel prices dropped a record 2.0% last month after increasing 0.4% in February..