A global energy shock triggered by the Iran war sent U.S. inflation soaring in March, with the Consumer Price Index rising at a 3.3% annual rate, the highest reading in nearly two years. Economists had predicted inflation would jump nearly an entire percentage point from 2.4% in February to 3.3% in March on an annual basis, according to the average of six separate forecasts reviewed by CBS News. The last time inflation was this high was in May 2024.
Main Idea: U.S. inflation jumped in March as the Iran war drove up energy costs and pushed gasoline prices sharply higher.
Key Points:
Higher gas and energy prices from the Iran war can raise household costs for fuel, food, and travel, squeezing budgets for consumers and small businesses.
Lower core inflation may give the Federal Reserve room to avoid more rate hikes, which could help keep borrowing costs steadier for workers and households.
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