economy

April 30, 2026

Core inflation rate hit 3.2% in March as first-quarter growth disappointed at 2%

Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Fed.

Core inflation rate hit 3.2% in March as first-quarter growth disappointed at 2%

TL;DR

  • Core inflation rose to 3.2% annually in March, up from 2.9% in February, driven by goods prices, particularly energy.
  • First-quarter GDP grew at a 2% annualized pace, lower than the 2.2% estimate.
  • Initial jobless claims fell to 189,000 for the week ended April 25, the lowest since September 1969.
  • The Federal Reserve held interest rates steady but faced dissents regarding future policy.
  • Consumer spending increased, but inflation-adjusted spending was affected by rising energy prices.
  • The economy shows a "split-screen" effect, with AI-related sectors thriving while middle and moderate-income households struggle with inflation.

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