According to the latest Bureau of Labor Statistics inflation report, consumer prices surged in March as the Iran war caused energy costs to soar and pushed the Federal Reserve further from its inflation goal.
The BLS report on Friday also indicated that underlying inflation was relatively moderate.
According to the report, the energy index rose 10.9 percent in March, led by a 21.2 percent increase in the gasoline index, which accounted for nearly three-quarters of the total all-items increase for the month.
The shelter index also rose in March, increasing by 0.3 percent. The food index remained unchanged for the month as the index for food away from home increased by 0.2 percent, while the index for food at home decreased by 0.2 percent.
The consumer price index rose by a seasonally adjusted 0.9% for the month, bringing the annual inflation rate to 3.3%, driven by a 10.9% increase in energy costs.
Excluding food and energy, core prices increased only 0.2% during the month and 2.6% compared to the previous year, both slightly below forecasts by 0.1 percentage point, suggesting that underlying inflation remained more controlled.
Indexes that rose during the month include airline fares, apparel, household furnishings and operations, education, and new vehicles. Conversely, the indexes for medical care, personal care, and used cars and trucks were among the major ones that declined in March.
By CEO NA Editorial Staff
