U.S. consumer prices rose less than expected in March and underlying inflation slowed, suggesting the Federal Reserve will remain cautious about raising interest rates this year.
The Labor Department said on Thursday its Consumer Price Index gained 0.1 percent last month as a rebound in gasoline prices was partly offset by a drop in the cost of food. There were also slowdowns in medical care and housing costs.
The CPI fell 0.2 percent in February. In the 12 months through March, the CPI increased 0.9 percent after advancing 1.0 percent in February.
Economists polled by Reuters had forecast the CPI gaining 0.2 percent last month and rising 1.1 percent from a year ago.