U.S. inflation rose sharply to 3.5% in March, driven by the Iran war and rising energy costs, according to the latest Commerce Department data.
US Inflation Surges to 3.5% in March Amid Iran War
Inflation accelerated sharply in March, driven largely by the economic impact of the ongoing war in Iran, according to new data released Thursday by the Commerce Department.
The personal consumption expenditures (PCE) price index showed that annual inflation hiked to 3.5 percent in March, significantly from 2.8 percent recorded in February. Core inflation, which excludes volatile food and energy prices, also rose to 3.2 percent as energy markets reacted to geopolitical tensions.
On a monthly basis, consumer prices increased by 0.7 percent in March, compared to a 0.4 percent rise in the previous month, highlighting a notable surge in cost pressures.
The PCE index, the Federal Reserve’s preferred gauge for tracking inflation, now sits well above the central bank’s 2 percent target, raising concerns about persistent inflationary trends.
Economists had anticipated the uptick, warning that the conflict in Iran could place significant strain on the U.S. economy through higher energy costs and supply disruptions.
The inflation spike is expected to intensify scrutiny on President Trump and Republican leaders, who are already under pressure over their economic policies, as rising prices continue to impact American households.
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