Federal · Fortune Technology
Biggest jump in gas prices in 60 years, biggest jump in inflation since Biden: CPI carnage in March
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The largest monthly jump in gas prices in six decades caused a sharp spike in inflation in March, creating major challenges for the inflation-fighters at the Federal Reserve and heightening the political hurdles for the White House.
Key facts
- Gas prices averaged $4.15 a gallon nationwide Friday, up from $2.98 on the day before the war began and a hike of nearly 40%, according to motor club AAA
- Inflation reached a peak of 9.1% in June 2022, as COVID-19 snarled supply chains and several rounds of stimulus checks pushed up consumer demand
- Consumer prices rose 3.3% in March from a year earlier, the Labor Department said Friday, up sharply from 2.4% in February and the biggest yearly increase since May 2024
- Excluding the volatile food and energy categories, core prices rose 2.6% in March from a year earlier, up from 2.5% in February
Summary
Consumer prices rose 3.3% in March from a year earlier, the Labor Department said Friday, up sharply from 2.4% in February and the biggest yearly increase since May 2024. It’s the first read on inflation to capture the effects of the Iran war. Excluding the volatile food and energy categories, core prices rose 2.6% in March from a year earlier, up from 2.5% in February. A big question for now is how long the oil and gas price shock lasts and whether it will lead to a broader, long-lasting inflation spike, similar to what happened in the spring of 2022 after Russia invaded Ukraine.