U.S. consumer prices increased by the most in nearly four years in March as the war with Iran boosted oil prices and the pass-through from tariffs persisted, further diminishing chances for an interest rate cut this year.
The Consumer Price Index jumped 0.9% last month, the Labor Department's Bureau of Labor Statistics said on Friday, the largest increase since June 2022 when prices soared in response to the Russia-Ukraine war. Consumer prices rose 0.3% in February.
In the 12 months through March, the CPI advanced 3.3% after rising 2.4% in February.
Economists polled by Reuters had forecast the CPI accelerating 0.9% and increasing 3.3% year-on-year. The jump in consumer inflation followed in the wake of a sharp rebound in job growth last month, which suggested the labor market remained stable.