U.S. inflation jumped in March
U.S. consumer prices rose 3.3% year-on-year in March — the fastest annual increase in nearly two years — with monthly prices also up sharply in March. The jump was driven largely by a surge in gasoline prices tied to disruptions around the Strait of Hormuz, which pushed energy costs much higher month-on-month. ((us.cnn.com))
U.S. inflation sped up in March, with consumer prices rising 3.3% from a year earlier after a sharp jump in gasoline costs. (bls.gov) The Consumer Price Index rose 0.9% in March from February, up from a 0.3% monthly increase in February, the Bureau of Labor Statistics said on April 10. Energy prices climbed 10.9% in a single month, and gasoline alone jumped 21.2%. (bls.gov) The Bureau of Labor Statistics said gasoline accounted for nearly three quarters of the monthly increase in the overall index. Food prices were flat in March, while shelter costs still rose 0.3%. (bls.gov) That left headline inflation much hotter than February’s 2.4% annual reading and further from the Federal Reserve’s 2% goal. Core inflation, which strips out food and energy, rose 0.2% in March and was steadier than the top-line number. (cnbc.com) The March report was the first full consumer inflation reading since the Iran war began on February 28, and economists tied the spike to the oil shock that followed. Reuters reported on April 11 that U.S. and Iranian negotiators had opened talks in Pakistan as President Donald Trump said the U.S. military was starting to clear the Strait of Hormuz. (cnbc.com) (usnews.com) The Strait of Hormuz is the narrow waterway used to ship a large share of the world’s oil, so any disruption there can raise crude prices quickly and feed through to gasoline, airfares, and freight costs. CNBC reported that the March data showed the first month of that fallout for U.S. consumers. (cnbc.com) Federal Reserve officials were already more worried about inflation before the March price report arrived. Minutes from the March 17-18 meeting show policymakers discussed the risk that higher gasoline prices could lift inflation, and The Associated Press reported this week that more officials saw possible rate hikes later in 2026. (federalreserve.gov) (apnews.com) For households, the fastest price increases were concentrated in fuel, not across every category at the store. But for the Federal Reserve, a 3.3% annual inflation rate and a 0.9% monthly jump make March a reminder that one energy shock can still push overall prices up fast. (bls.gov) (cnbc.com)
