CPI Report: First Inflation Print Since Beginning Of Iran War Shows Consumer Prices Rise In Line With Expectations

• Core CPI, which excludes food and energy, rose 0.2% in January, below Wall Street expectations.
• Soaring energy costs drove the rise in headline inflation, with the energy index rising 10.9% in March.
• The gasoline index surged 21.2% during the month, contributing to a three-quarter increase in the headline prices, the BLS report stated.

U.S. consumer prices rose in line with expectations in March in the first inflation print since the beginning of the Iran war, according to the Consumer Price Index (CPI) report released on Friday.

According to data from the Bureau of Labor Statistics (BLS), on a seasonally adjusted basis, CPI rose 0.9% in March, after rising 0.3% in February.

This puts the annual rate at 3.3% before the seasonal adjustment.

Core CPI, which excludes food and energy, rose 0.2% in March, slightly below the Dow Jones estimate, according to MarketWatch data.

On an annual basis, core CPI stood at 2.6%, below Wall Street expectations. The headline and core inflation are still above the Federal Reserve’s long-term target of 2%.

On an annual basis, core CPI stood at 2.6%, below Wall Street expectations. The headline and core inflation are still above the Federal Reserve’s long-term target of 2%.

Source: Bureau of Labor Statistics, U.S. Department of Labor

Energy Costs Soar

Soaring energy costs drove the rise in headline inflation, with the energy index rising 10.9% in March.

The gasoline index surged 21.2% during the month, contributing to a three-quarter increase in the headline prices, the BLS report stated.

According to AAA data, gasoline prices have soared by more than 17% over the past month.

Food Costs Unchanged, Airline Fares Rise

The BLS report also stated that food costs remained unchanged during March, while the shelter index rose 0.3%.

Airline fares, apparel, household furnishings, education, and new vehicle prices increased in March. However, medical care, personal care, and user car prices declined during the month, the report stated.

Meanwhile, U.S. equities were mixed in Friday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, gained 0.12%; the Invesco QQQ Trust ETF (QQQ) rose 0.27%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.24%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down 0.03% at the time of writing.

Also See: NKE Stock Is Down 31% This Year — And Wall Street Pessimism Isn't Coming To A Stop

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