US inflation falls to lowest level since May 2021.

The pace of US consumer price increases continued to cool down in March from last summer’s scorching-hot levels
Prices are moving in a more palatable direction for US consumers.

Annual inflation, as measured by the Consumer Price Index, dropped in March for the ninth consecutive month. And for the first time since September 2020, grocery prices fell on a monthly basis.

Prices rose 5% for the 12 months ended in March, down from 6% in February, the Bureau of Labor Statistics reported Wednesday. Annual CPI plunged to its lowest rate since May 2021, helped by year-over-year comparisons to a period when food and energy prices spiked amid Russia’s invasion of Ukraine.

Still, CPI showed some cooling on a monthly basis. The index, which measures price changes over time for a basket of goods, ticked up 0.1% from February, as compared to a previous 0.4% increase.

Shelter costs, which tend to reflect lagging data, were the largest contributor of the monthly gain, offsetting sharp declines across energy categories, according to the BLS.

The food at home index dropped 0.3% for the month, helped by lower prices for eggs (which fell nearly 11%) and fruits and vegetables (which declined 1.3%). The broader food category was unchanged (0%) for the first time since November 2020.

Economists were expecting an annual increase of 5.2% and a monthly gain of 0.2%, according to Refinitiv.