Economic Buzz: US inflation rises in March as energy costs surge

U.S. consumer prices increased sharply in March, mainly due to higher energy costs caused by the Iran conflict, according to a Bureau of Labor Statistics report released Friday.

The Consumer Price Index (CPI) rose 0.9% in March, pushing the annual inflation rate to 3.3%, up from 2.4% in February and the highest since April 2024.

Energy prices were the main driver, jumping 10.9%, with gasoline surging 21.2%, accounting for nearly three-quarters of the overall increase.

However, underlying inflation remained relatively stable. Core inflation, which excludes food and energy, rose just 0.2% for the month and 2.6% year-on-year, both slightly below forecasts.

Some categories even saw price declines, including medical care, personal care, and used cars and trucks, indicating that broader inflation pressures were still contained despite the spike in energy costs.

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