The core inflation rate rose 0.2% month-over-month in March, the same level as February, the BLS report revealed. What indices increased in the US during March? The energy index was the main driver of the rise, with a 10.9% increase in March, fueled by a 21.2% jump in the gasoline index, which accounted for nearly three-quarters of the monthly increase in the overall index. The cost of housing, typically the data that most contributes to the growth of the CPI, rose 0.3%, while food prices remained unchanged in March after rising 0.4% in February and food away from home rose 0.2%. In year-over-year terms, the energy component rose 12.5%, while food grew 2.7%. The US Consumer Price Index (CPI) rebounded in March to a 3.3% year-over-year rate, the highest since May 2024, in line with market forecasts that estimated a significant increase from February's 2.4%, driven by high gasoline prices due to the war in Iran. Core inflation, which excludes energy and food indices, rose to 2.6%, a tenth higher than in February, the Bureau of Labor Statistics (BLS) reported this Friday, in line with the moderate estimated impact of President Donald Trump's tariffs, before a possible increase derived from the conflict in the Middle East. The US and Israel's war against Iran has plunged markets into uncertainty and driven up hydrocarbon prices due to the interruption of tanker traffic through the strategic Strait of Hormuz, which was blocked by Tehran as retaliation for the war, and whose reopening depends on the current ceasefire. On a monthly basis, inflation rose 0.9% in the third month of 2026, after the previous 0.3% increase. Airfares, clothing, home furnishings, education, and new vehicles were among the indices that increased in March. What factors decreased in the US? Among those that decreased were healthcare, personal care, and used cars and trucks. Inflation, along with unemployment data and Gross Domestic Product (GDP), is key to assessing the health of the economy and will serve the Federal Reserve in making monetary policy decisions during its next meeting scheduled for April 28 and 29.
US Inflation Reaches Highest Level Since May 2024
In March, core inflation in the US rose 0.2% month-over-month. The main driver of the increase was the energy index, which jumped 10.9%, primarily due to gasoline. The overall CPI reached a 3.3% year-over-year rate, the highest since May 2024. The price surge was fueled by the war in Iran, which has created market uncertainty and driven up oil prices.
