The latest Consumer Price Index report showed a 0.9% monthly rise in March, the biggest increase since June 2022. On an annual basis, CPI rose 3.3%, up from 2.4% in February. A 21.2% jump in gasoline prices drove much of the increase, while other motor fuels, including diesel, rose 30.8%.
Even so, core CPI, which excludes food and energy, rose 0.2% on the month and 2.6% from a year earlier. Markets took some relief from the softer core reading because it suggested the first inflation shock had not yet spread broadly across the economy.
Brian Jacobsen at Annex Wealth Management said, “There are no signs, yet, that high energy prices are seeping into core inflation.” Bret Kenwell at eToro also said, “The message is clear: inflation remains sticky.” Both comments reflected a market view that inflation pressure remains real, yet not severe enough at this stage to force an immediate policy shift.