Investing.com - U.S. consumer prices rose less than expected in March, while underlying inflation also rose at a slower than expected rate, according to official data released on Thursday.
The consumer price index rose by a seasonally adjusted 0.1% from a month earlier, the Commerce Department said, compared to economists expectations' for a 0.2% increase.
Consumer prices were up 0.9% from the same month a year earlier, falling short of expectations for a 1.1% rise.
Core inflation, which strips out food and energy costs, increased by a seasonally adjusted 0.1% in March, bringing the annual rate to 2.2%.
Economists had expected a monthly increase of 0.2% and an annual increase of 2.3%.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
The weak data indicated that the Federal Reserve is likely to stick to its cautious approach on raising U.S. interest rates.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.92 from around 95.00 ahead of the report.
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS! http://glocdn.investing.com/news/LYNXMPEABA0QL_M.jpg