US CPI comes in lower than expected, but April rate cut still unlikely

Although US inflation was weaker than expected in March, the ongoing war between the United States, Iran and Israel has fueled macroeconomic uncertainty.

The United States Bureau of Labor Statistics (BLS) published the Consumer Price Index (CPI) data for March, showing a 0.9% month-over-month rise in headline CPI inflation.

CPI inflation is up 3.3% year-over-year, according to the BLS report published Friday. Although inflation came in slightly lower than analyst expectations, inflation remains elevated above the Federal Reserve’s 2% target.

A surge in energy prices from the Iran war drove March’s inflation figures, with the energy index rising by nearly 11%, led by a 21.2% rise in gasoline prices, the BLS report said.

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