economy
US inflation soars in March as war on Iran drives economy into uncertainty
Prices were up 3.3% over the year, adding to the unpredictability that first came with Trump tariffs
TL;DR
- US inflation rose 0.9% in March, and 3.3% year-over-year, the largest jump in almost two years.
- Energy prices increased by 10.9%, with gasoline prices accounting for most of the rise.
- Core inflation, excluding food and energy, rose by a more moderate 0.2% monthly and 2.6% annually.
- The US-Iran conflict and blocked Strait of Hormuz are cited as major factors for the price increases.
- Consumer confidence dropped by 10.7% to its lowest recorded level, with consumers blaming the Iran conflict.
- The labor market remains strong, with 178,000 jobs added in March and the unemployment rate at 4.3%.
- The Federal Reserve faces a dilemma on adjusting interest rates due to rising inflation and a strong labor market.
- Gross domestic product (GDP) for the last quarter of 2025 was revised down from 1.4% to 0.5%.