Consumer Inflation Ticks Higher in March

March’s inflation reading showed a gain of 0.2% for both the headline CPI and the core CPI, which excludes the volatile food and energy sectors. Bloomberg had the estimates as a gain for 0.1% on both readings. Dow Jones also was expecting 0.1%.

Energy prices were tame, with a 0.1% decline as gasoline was down by 1.7%, but food prices did come into play with another gain of 0.4% for the month.

Where this story gets more interesting is in the FOMC’s inflation target of 2.0%. Prices are measured on a monthly change in the headlines, but the year-over-year change was up by 1.5% in March from 1.1% for February.

The FOMC’s 2.0% target, and up to a 2.5% upper band, has not come close to being hit at this point. As long as inflation remains this low, it is less and less likely that the voices calling for a more rapid rate hike policy to end the zero-rate environment will be able to get much of a say in the matter.