US inflation jumps in March as Iran fuel costs flare and Fed faces tougher outlook

Published on 1 May 2026

Gasoline spikes tied to an Iran conflict

US inflation rose sharply in March, with higher gasoline prices linked to the Iran conflict pushing the PCE index to its biggest monthly gain in nearly two years. Core inflation stayed firm, reinforcing expectations that the Fed may keep rates higher for longer. Meanwhile, real consumer spending growth showed early signs of slowing.

March inflation surge was fueled largely by gasoline price increases
PCE logged its sharpest monthly rise in nearly two years
Core inflation remained steady, supporting higher-for-longer rate expectations
Consumer spending growth is starting to cool

#fed #interest rates #us inflation #pce index #gasoline prices

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US inflation jumps in March as Iran fuel costs flare and Fed faces tougher outlook

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