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Airfares Decelerate As Expected, But Used Car Prices On The Soft Side

US DATA

A mixed performance by some of the more volatile pandemic-related components of core CPI in March:

  • Airfares continued to grow strongly at +4.0% M/M but as anticipated saw a deceleration from an outsized +6.4% in Feb.
  • Lodging prices accelerated to a 5-month high 3.1% from 2.60% prior.
  • But used cars - which many thought would see higher prices in March - saw further deflation, albeit a 7-month "high" at -0.9%.
  • New car prices picked up to +0.6% from +0.2% prior.
  • Meanwhile vehicle rental prices fell at the sharpest rate in 8 months at -3.8%.

Source: BLS, MNI

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