Last Friday, CPI increased by 0.9% for the month of March, putting the annual CPI rate at 3.3%. This was a significant increase in inflation compared to February, attributed to a 21% increase in gasoline prices because of the Iran War that caused approximately three quarters of the monthly increase.
The good news from the CPI report was that core prices, excluding food and energy, increased just 0.2% for the month and 2.6% annually, coming in below forecasts.
Crude and gas prices seem to have moderated since a ceasefire between the U.S. and Iran was announced last Tuesday. However, over the weekend, President Trump has announced the U.S. will begin to blockade the Strait of Hormuz after peace talks with Iran failed. The announcement of a ceasefire sparked optimism that a resolution to the conflict was near, but the blockade seems to have wiped those hopes away, with crude oil up around 5% on Monday morning.
Sources: Bureau of Labor Statistics, CNBC
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