Inflation slows but stays high enough for Fed to hike again

U.S. consumer inflation eased in March, with less expensive gas and lower food prices providing some relief to households that have struggled under the weight of surging prices for nearly two years.

The government said Wednesday that consumer prices rose just 0.1% from February to March, down from 0.4% from January to February and the smallest increase since December.

Measured from a year earlier, prices were up just 5% in March, down sharply from February’s 6% year-over-year increase and the smallest rise in almost two years. Much of the drop resulted from price declines for goods such as gas, used cars and furniture which had soared a year ago after Russia’s invasion of Ukraine.