Energy lifts March inflation

U.S. consumer prices jumped 0.9% in March, the biggest monthly increase since June 2022, after energy costs surged. (bls.gov) The Bureau of Labor Statistics said the energy index rose 10.9% in March, led by a 21.2% jump in gasoline prices. Gasoline alone accounted for nearly three-quarters of the month’s overall increase in the Consumer Price Index. (bls.gov) Annual inflation accelerated to 3.3% in March from 2.4% in February. Excluding food and energy, the core index rose 0.2% on the month and 2.6% from a year earlier. (bls.gov) Other household costs moved more modestly. Shelter rose 0.3% in March, food was unchanged, food at home fell 0.2%, and food away from home increased 0.2%. (bls.gov) The split between headline and core inflation showed how much of March’s jump came from fuel rather than a broad-based rise across the economy. Medical care, personal care, and used cars and trucks all posted declines during the month. (bls.gov) Reuters and CNBC tied the March spike to a run-up in oil prices during the Iran conflict, which pushed gasoline and diesel sharply higher. CNBC reported that energy prices had moderated in April after a ceasefire between the United States and Iran. (msn.com) (cnbc.com) The inflation report landed three weeks after Federal Reserve officials said inflation remained “somewhat elevated” and published a median 2026 projection of 2.7% for personal consumption expenditures inflation, the central bank’s main price gauge. (federalreserve.gov 1) (federalreserve.gov 2) March’s data left the Federal Reserve with a familiar problem: a headline inflation burst driven by energy, while underlying prices stayed firmer than the central bank’s 2% target. The next test is whether April energy prices stay lower long enough to keep that March spike from spreading deeper into household budgets. (cnbc.com) (federalreserve.gov)