U.S. Inflation Surges in March

(MENAFN) U.S. consumer inflation picked up speed in March, reaching its highest level since May 2024, as a significant jump in energy costs—particularly gasoline—pushed overall living expenses higher, according to data published Friday by the Bureau of Labor Statistics.

The Consumer Price Index (CPI) rose 0.9% month over month in March, marking the strongest monthly increase since June 2022, following a 0.3% gain in February. On a yearly basis, inflation climbed to 3.3%, up from 2.4% in the prior month. Both figures came in slightly under economists’ forecasts, which had projected a 3.4% annual rate and a 1% monthly increase for March.

Energy prices were the main driver of the surge, jumping 10.9% in March—the steepest monthly rise in over two decades, dating back to September 2005. Gasoline prices alone soared 21.2% during the month, the largest monthly increase since records began in 1967. This spike accounted for nearly 75% of the overall monthly rise in consumer prices. On a yearly basis, energy costs increased 12.5%, while gasoline prices were 18.9% higher than a year earlier.

Shelter expenses also continued their upward trend, edging up 0.3% over the month. Food prices remained stable overall, although food consumed away from home rose slightly by 0.2%, while groceries at home dipped by 0.2%.

Core inflation, which excludes both food and energy, increased by 0.2% in March, matching February’s pace. Over the 12 months ending in March, core CPI reached 2.6%, slightly higher than February’s 2.5% annual gain.

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