Energy Price Spikes Push March Inflation to 3.3%

The annual inflation rate reached 3.3% in March, the steepest rise since June 2022. This spike followed a 0.3% increase in February. The Consumer Price Index rose 0.9% in March, falling slightly short of the 1.0% market expectation. The acceleration was driven by the energy index, which rose 10.9% in March, led by a 21.2% rise in gasoline prices. These costs increased as the Trump Administration entered a conflict with Iran, which drove up international energy commodity prices. Core inflation, which excludes food and energy, rose 0.2% monthly and 2.6% annually. Federal Reserve Chair Jerome Powell stated that long-term inflation expectations remain – anchored – even as the benchmark remains above the 2% target. The Federal Reserve may decide against additional rate cuts in 2026.