U.S. key inflation gauge in March hits highest level in almost 3 yrs
The U.S. personal consumption expenditures price index rose 0.7% in March, marking its highest annual rate of 3.5% in almost three years. The sharp hike in energy prices due to the Middle East conflict largely caused the sudden jump in headline inflation.
The U.S. 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, faster than expected. The annual rate jumped from 2.8% in February, largely due to rising energy prices caused by the Middle East conflict. The conflict has slowed shipping traffic in the Persian Gulf and Strait of Hormuz, affecting global oil trade. U.S. GDP grew at a 2% seasonally adjusted annualized pace in the first quarter of 2026, below market estimates. Initial jobless claims totaled 189,000 for the week ending April 25, showing the labor market's resilience.
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