US inflation surges in March on energy price spike
6.6 Macro US inflation rose 3.3% in March, led by record energy price hikes after Middle East conflict. Core CPI grew 2.6%. The surge pressures the Fed and impacts household spending.
US inflation rebounded sharply in March, primarily due to soaring energy prices following the conflict in the Middle East and the closure of the Strait of Hormuz. The Consumer Price Index (CPI) climbed 3.3% year-over-year and 0.9% month-over-month, with energy contributing nearly three-quarters of the monthly rise. Gasoline prices jumped 21.2%, the largest monthly increase since 1967, while West Texas Intermediate oil surged almost 50% during March. Core CPI, which excludes food and energy, rose 0.2% monthly and 2.6% annually—figures that align with Federal Reserve targets and came in below some forecasts. The uptick in inflation presents challenges for monetary policy and directly affects household spending. Despite the inflationary pressures and market volatility, financial markets—particularly Bitcoin—remained relatively stable, with institutions increasing their exposure to cryptoassets.
