US Inflation Eases

Posted April 13th, 2012 at 9:35 am (UTC-5)
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Inflation eased slightly in the U.S. economy in March.

Friday's report from the Labor Department says overall prices rose three-tenths of a percent in March, a bit less than the previous month.

Outside the volatile areas of food and energy, prices in the overall economy advanced just two-tenths of one percent.

Low inflation makes it more likely that the U.S. central bank can keep interest rates at their current very low level. Low interest rates are intended to stimulate the economy by making it easier for businesses to borrow the money they need to buy equipment, build factories, and hire people.

Economists say low interest rates could, eventually, contribute to higher inflation that could hurt economic growth, so officials are watching prices closely.