The Federal Reserve’s preferred inflation measure surged in March as U.S. consumers continue to face price pressures amid the war in Iran.
March’s annual personal consumption expenditures (PCE) price index inflation advanced to 3.5 percent, from 2.8 percent in February, according to new Bureau of Economic Analysis data released on April 30.
This was in line with economists’ expectations.
The Iran war—nearing its 10th week—has sharply increased global energy prices. Crude oil remains above $100 per barrel, while national average gasoline prices are above $4 a gallon.
Excluding the volatile energy and food prices, the 12-month core PCE inflation edged higher to 3.2 percent last month, from 3 percent in February….