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Consumer Prices Rise 0.2%

Wall Street Journal (04/15/14) Damian Paletta

The consumer price index rose 0.2% in March from February, according to the U.S. Department of Labor, though price pressures remained muted amid weak growth in the U.S. and overseas. Economists surveyed by the Wall Street Journal had forecast a 0.1% increase. Core prices, which exclude volatile food and energy costs, also increased 0.2%.

Compared with a year ago, consumer price inflation rose to 1.5% in March from 1.1% in February, but it stayed below the U.S. Federal Reserve’s 2.0% target for annual inflation. Moderate inflation is considered by economists to be a sign of healthy consumer demand that encourages companies to hire new employees.