US Inflation Rises in March, Energy Leads
The US annual inflation rate rose to 3.3% in March 2026, the highest level since May 2024, from 2.4% in February, and in line with expectations. This increase underscores the renewed strengthening of price pressures as markets monitor the impact of the war on energy costs.
Energy was the primary driver, with energy costs surging 12.5% year-on-year. Gasoline prices rose 18.9%, driven by disruptions and supply risk premiums related to the conflict with Iran.
On a monthly basis, consumer prices rose 0.9%, the largest increase since June 2022, after rising 0.3% in February, also in line with expectations. This monthly surge was led by a 21.2% increase in gasoline prices, reinforcing the narrative that the energy shock is rapidly spreading to headline inflation.
For the market, the resurgent inflation profile is likely to keep interest rate expectations tight for longer, as the Fed risks facing a dilemma between containing inflation and maintaining economic activity. The next focus will typically be on whether energy pressures ease, how policy responses unfold, and whether inflation remains stable after the initial impact of the conflict has trickled down to other prices. (gn)
Source: Newsmaker.id
