U.S. Inflation Hits 3.2% As Oil Prices Drive Costs Higher

The US inflation remained elevated in March as energy-driven price pressures persisted. According to the US Commerce Department, the core personal consumption expenditures index rose 0.3% for the month, taking the annual rate to 3.2%, in line with expectations.

The report said overall inflation, including food and energy, increased 0.7% monthly and 3.5% annually, reflecting the impact of rising oil prices linked to the Iran conflict.

U.S PCE INFLATION RISES TO 3.5% AS Q1 GDP SLOWS TO 2.0%

The March PCE Price Index confirms a 3.5% annual rise in inflation as the US economy enters a period of stagnant growth.

Core PCE remains elevated at 3.2% Y/Y, matching estimates but signaling persistent price pressure… pic.twitter.com/jxzj670PgZ

— BSCN (@BSCNews) April 30, 2026

Economic growth showed modest improvement. According to the Commerce Department, US GDP expanded at a 2% annualised rate in the first quarter, up from 0.5% previously but slightly below forecasts.

The data highlights continued pressure on policymakers balancing inflation control and economic stability.

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U.S. Fed Keeps Rates Unchanged Amid Iran War Uncertainty

The US Federal Reserve held interest rates steady at 3.50% to 3.75% for a third straight meeting, reflecting caution amid rising global uncertainty. According to the Fed’s statement, tensions in the Middle East and elevated energy prices continue to weigh on the economic outlook and keep inflation

tippinsightsTIPP Staff