March Core CPI 1.1% YOY, Inflation Tame. Retail Sales +1.6% , Consumer Spending Up. Rates Net Even (CHARTS)

The US Consumer Price Index, which measures inflation at the consumer level of the economy, was nearly flat at 0.1% in March and 2.3% year-over-year through March. Excluding volatile oil and food costs from the readings, “Core” CPI for March was unchanged and increased 1.1% YOY through March. Consumer inflation for the month is within the Fed’s comfort zone of 1-2%. Also released today was March Retail Sales showing a 1.6% gain. One month doesn’t make a trend but compared to February’s 0.5% number, it shows that consumers (who typically account for two-thirds of GDP) might be ramping up spending. This tame inflation data along with a more aggressive Retail Sales number have offset each other today in the bond market and rates are even as a result—low inflation typically causes bonds to rally and rates to drop, and an improving economic stat like today’s retail sales has the opposite market effect.

See Commerce Department’s retail sales charts below. Also you can automatically create charts and download historical CPI data by scrolling to our data section on the right side of the site, or visiting our Data page. And you can see all stats on our Economic Calendar page, and click each release title for the definition of what each stat means.