Fed’s key inflation gauge hits 3.5% as Iran war pushes up gas prices
The Federal Reserve's preferred inflation gauge rose to 3.5% in March, its highest rate in almost three years, driven by rising gas prices due to the conflict in Iran. The annual rate of inflation jumped from 2.8% in February, exceeding the Fed's 2% target.
The Federal Reserve's preferred inflation gauge hit 3.5% in March, its highest rate in almost three years. The Personal Consumption Expenditures price index rose 0.7% from February, driven by record gas price increases due to the Middle East conflict. The annual inflation rate jumped from 2.8% in February, exceeding the Fed's 2% target. Gas prices remained high through April, and the energy shock is expected to affect other goods and services. The US central bank kept interest rates steady on Wednesday, with Fed Chair Jerome Powell stating that the current policy stance is in a 'very good place'. Economists warn that inflation was already running hot before the Iran conflict, and price growth is climbing.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.