US inflation jumps in March

U.S. inflation accelerated in March, with consumer prices posting their biggest monthly jump since June 2022. (bls.gov) The Consumer Price Index rose 0.9% from February and 3.3% from a year earlier, the Bureau of Labor Statistics said on Friday, April 10. February’s annual rate was 2.4%. (bls.gov) Energy drove much of the increase. The energy index climbed 10.9% in March, gasoline prices jumped 21.2%, and fuel oil rose 30.7%, according to the government report. (bls.gov) Core inflation, which strips out food and energy to show underlying price pressure, was calmer. Core prices rose 0.2% in March and 2.6% from a year earlier, down from 2.7% in February. (cnbc.com) That split matters because headline inflation tracks what households actually pay each month, while core inflation is the measure Federal Reserve officials often watch for longer-lasting trends. March showed a fuel shock hitting consumers faster than broader price growth. (bls.gov) (cnbc.com) Reuters reported the March increase was the largest in nearly four years and said higher oil prices tied to the war with Iran, along with tariff pass-through, reduced the odds of an interest-rate cut this year. (aol.com) Government fuel data showed the average U.S. price for regular gasoline was $3.64 a gallon in March, up 25.1% from February and 17.5% from March 2025. That helps explain why fuel moved so quickly into the inflation report. (bts.gov) Other parts of the basket were less dramatic. Shelter rose 0.2% in March, food increased 0.4%, and used cars and trucks, medical care, and personal care posted declines, according to the Bureau of Labor Statistics. (bls.gov) (cnbc.com) The March report leaves inflation above the Federal Reserve’s 2% target and puts more weight on upcoming data for April and May. If fuel prices cool, headline inflation could ease; if they stay elevated, the March spike may last longer. (bls.gov) (aol.com)