Inflation ramped up in March to the hottest levels since May 2024 as higher energy prices seeped through the economy – putting another dent in the Federal Reserve’s path to interest-rate cuts.
The Consumer Price Index rose 3.3% in March over the past 12 months – a sharp rise from 2.4% the previous month, the Bureau of Labor Statistics said Friday.
Core CPI – which excludes volatile food and energy prices – is up 2.6% over the year, up from 2.5% in February.
The hotter inflation report was largely driven by a massive 21.2% monthly increase in gasoline prices, according to the report.
It is the first glimpse into how the Middle East conflict is impacting inflation, as Iran’s blockade of the Strait of Hormuz – a critical route for 20% of the world’s oil – has created the worst-ever energy supply disruption.
This is a developing story. Please check back for updates.
