Consumer Prices Reportedly Rose in March Over Soaring Energy Costs, but It's Mostly Good News


March Sees Consumer Prices Rise Amidst Energy Cost Surge, Yet Predominantly Positive Outlook Emerges

There are instances when predictable news is actually welcome, as it was on Friday morning with the release of March’s Consumer Price Index (CPI) report. This data, compiled by the Bureau of Labor Statistics, aligned closely with expectations, offering little in the way of surprise.

The headline-grabbing aspect of the report was the significant impact of energy prices, which soared by 10.9 percent, contributing largely to a 3.3 percent rise over the past year and a 0.9 percent increase from February’s figures. However, when energy and food prices were excluded to calculate the core CPI, the increase was a modest 0.2 percent, with prices in some consumer sectors even showing a decline.

For a deeper understanding, it’s worth noting that CNBC described the current inflation scenario as “relatively tame,” despite the energy price surge. This spike in energy costs was primarily due to a temporary rise in gas prices, which occurred before a ceasefire was declared in the Iran conflict in recent days.

We’ll delve more into vehicle prices shortly, but this context provides a clearer picture of the broader economic landscape as detailed in the latest BLS report.

The consumer price index increased a seasonally adjusted 0.9% for the month, putting the annual inflation rate at 3.3%, pushed by a 10.9% surge in energy costs. Both numbers were in line with the Dow Jones consensus. The annual rate was the highest since April 2024 and up from 2.4% in February.

However, excluding food and energy, core prices rose much less – just 0.2% for the month and 2.6% from a year ago, both 0.1 percentage point below forecast, indicating that underlying inflation was contained. There even were even pockets of outright price declines, as medical care, personal care, and used cars and trucks all fell during the month.

More on the vehicle prices in a minute. The CNBC report linked above even characterized the current inflation picture as “relatively tame.”

And how did the energy spike happen, according to the BLS report? Mostly high gas prices, which were temporarily up before the ceasefire was called in the Iran conflict over the past few days.

The Iran conflict was the story for the monthly inflation reading, as gasoline soared 21.2%, accounting for nearly three-quarters of the headline price increase.

The Trump administration echoes analysts, as the above clip/reporting shows, in pointing out that there’s good news, too, with grocery prices continuing to moderate. That was National Economic Council Dir. Kevin Hassett’s main message, when he appeared on Fox News on Friday afternoon:

American consumers, in any case, don’t seem too spooked by the report, if another CNBC story aired after the news on the consumer price index report is accurate. One analyst on the panel notes that many people are using their 2025 tax refunds… to buy their families a new or used car/truck.

This is a developing story, RedState will provide more information as updates become available.

Editor’s Note: President Trump is leading America into the “Golden Age” as Democrats try desperately to stop it.  

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