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The numbers: Americans paid more for gas and rent in March, but inflationary pressures more broadly were muted in the U.S. economy.
The consumer price index jumped 0.4% in March, the government said Wednesday, matching the MarketWatch forecast of economists. It was the biggest increase in 14 months.
Over the past year, the cost of living has increased 1.9%, up from 1.5% in February.
Three-fifths of the increase in March stemmed from higher energy prices, mainly gasoline and electricity. If the volatile food and energy categories are stripped out, so-called core consumer prices rose a scant 0.1%.
The closely followed core measure, however, slipped again to a 12-month pace of 2% from 2.1%. That’s the lowest level in a year.
What happened: The cost of energy jumped a seasonally adjusted 3.5% in March
The average price of gas nationally rose almost 10% in March to $2.62 a gallon, government figures show. The last time prices were that high was in November.
Food prices rose 0.3% last month. Rents continued to rise and the cost of new cars and prescription drugs also rose.
Prices fell for clothes, used vehicles and airline fares.
After adjusting for inflation, hourly wages fell 0.3% in March. They’ve risen 1.3% in the past year, down from 1.9% in the prior month.
Read: Is the tax code fair? Trump tax cuts trigger biggest partisan rift in 20 years
Big picture: The uptick in inflation, being largely driven by higher gas prices, is unlikely to worry investors or the Federal Reserve. Inflation has tapered off after a sharp runup a year ago, and with the U.S. and global economies growing more slowly, there’s little likelihood of an outbreak in inflation anytime soon.
Read: Goldilocks economy? No. But steady job gains, low inflation to keep recession at bay
Market reaction: The Dow Jones Industrial Average DJIA, -0.72% and S&P 500 SPX, -0.61% were set to open slightly higher in Wednesday trades in an attempt to break a two-day losing streak.
The 10-year Treasury yield
TMUBMUSD10Y, +0.32%
was little changed at 2.50%. Yields are much lower compared to late last year, when they hit a seven-year high of 3.23%.
