Inflation ticked higher in March, according to new Labor Department data released Wednesday. The consumer price index (CPI), a popular measure of inflation, rose 0.4 percent last month and 3.5 percent annually.
The latest numbers come after two months of hotter than expected inflation data. Consumers prices were up 3.2 percent year-over-year in February and 3.1 percent in January.
More than half of the March increase in inflation came from gasoline and shelter prices, two areas with heavy influence on consumer sentiment.
Food prices, however, appear to be flatlining after years of steady increases. Food prices overall rose 0.1 percent in March after staying flat in February. While food bought away from home was 0.3 percent more expensive, groceries prices have been flat for two months and are up just 1.2 percent in the past year.
“This marks the third consecutive strong reading and means that the stalled disinflationary narrative can no longer be called a blip,” said Seema Shah, chief global strategist at Principal Asset Management, in an analysis.