Growth in US consumer prices slowed in March, thanks to decelerating petrol prices, but inflationary pressures remain strong, government data showed.
Consumer prices rose 0.3% in March, easing from February's 0.4% rate, the Labor Department said, matching analyst expectations.
Prices rose across energy, food and all items in the March consumer price index basket.
But the slowdown from February was mainly due to petrol prices, which rose 1.7% in March, stepping back from a 6% surge the previous month.
"The petrol index continued to rise, more than offsetting a decline in the household energy index and leading to a 0.9% increase in the energy index," the Labor Department said.
Food prices increased 0.2% after being flat in February. Prices for meats, poultry, fish and eggs jumped 0.8%, the largest increase since May 2011.
Excluding the more volatile food and energy prices, "core" CPI, the rate watched by the Federal Reserve for interest rate decisions, rose to 0.2% from 0.1% the prior month.
The year-on-year rise in CPI was 2.7%, easing from the prior month's 2.9% rate. Core CPI edged up to 2.3% from 2.2% year-on-year.
Though inflation is above the Fed's 2% benchmark, the central bank says that higher oil prices are transitory and maintains inflation does not warrant a tightening of its ultra-low interest rates, aimed at propping up economic growth.
