Inflation jumps, gas spikes
U.S. consumer inflation accelerated to 3.3% in March, a rise officials and markets noted this week. (us.cnn.com) The jump was driven chiefly by energy, with gasoline prices reported to have surged 21.2% in a single month—the largest monthly spike since 1967. (english.realtribune.ru) Some core measures were softened by unusual declines in used-car and health-insurance prices, and investors moved to safe havens as gold climbed on broader geopolitical and inflation worries. (republicworld.com; economictimes.indiatimes.com)
U.S. consumer inflation sped up to 3.3% in March after a sharp jump in gasoline pushed the biggest monthly increase in the Consumer Price Index in nearly two years. (bls.gov) The Bureau of Labor Statistics said the Consumer Price Index rose 0.9% in March, up from 0.3% in February. Energy prices climbed 10.9% on the month, and gasoline alone surged 21.2%, accounting for nearly three-quarters of the overall increase. (bls.gov) Strip out food and energy, and the picture was calmer. Core inflation rose 0.2% in March and 2.6% from a year earlier, with declines in used cars and trucks, medical care, and personal care helping offset the fuel shock. (bls.gov; cnbc.com) Gasoline mattered because it hits quickly and broadly, from household fill-ups to freight and airline costs. The Bureau of Labor Statistics said the March gasoline increase was the largest one-month rise in that series since it began in 1967. (bls.gov; cbsnews.com) The report also landed as Federal Reserve officials were already watching inflation expectations. The Federal Reserve Bank of New York said on April 7 that households’ short-term inflation expectations had risen and that expected gas-price growth had jumped to its highest level since March 2022. (newyorkfed.org) At the pump, the pressure was still visible after the report. The American Automobile Association listed the national average for regular gasoline at about $4.14 a gallon on April 11 and $4.13 on April 12, up from about $4.02 a week earlier. (aaa.com; aaa.com) Markets treated the inflation jump as another sign that price risks had not disappeared. Coverage of the report showed investors moving toward traditional safe havens, while gold prices pushed above $3,200 an ounce on April 12. (cbsnews.com; nationaltoday.com) That leaves March looking like an energy-driven inflation shock more than a broad rebound across the whole economy. The next question is whether April fuel prices cool enough to keep one month’s gasoline spike from turning into a longer run of hotter inflation. (bls.gov; aaa.com)
