Strong growth in US retail energy costs are expected to accelerate the headline CPI in March by 0.3%, moving the measure to 1.1% y/y, according to Societe Generale. Certain transitory effects of low petroleum prices are starting to shake off. Gasoline prices grew over 10% last month after declining in February. Stripping energy and food, the core CPI is likely to continue its resiliency in spite of being boosted by volatile components in the past two months, noted Societe Generale.
“We expect core prices to have risen by 0.2% in March, in line with its 2015 average, leaving the annual rate at 2.3%”, said Societe Generale.
