ECONOMY

Inflation rises as gas spike delays Fed rate cuts

PUBLISHED Apr 30, 2026, 9:39 AM ET

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Sources: 4

Washington — The Commerce Department reported Thursday that the Personal Consumption Expenditures price index rose 0.7% in March from February and 3.5% year-over-year, the largest annual increase in nearly three years. Gasoline prices surged about 21% in March, and outlets linked the spike to tensions involving Iran this month. The increase pushed headline inflation farther from the Fed’s 2% goal and prompted Federal Reserve officials to signal a likely hold on interest-rate cuts this week. Core PCE, which excludes food and energy, rose 0.3% in March and 3.2% year-over-year, reinforcing policymakers’ cautious approach and near-term monitoring of energy-driven price risks.

By Ayesha A. | JQJO News

Timeline of Events

Early 2026: Iran-related tensions escalate, contributing to rising global oil prices.
March 2026: U.S. gas prices jump nearly 21% month-to-month.
Late April 2026: Commerce Department releases March PCE data showing 0.7% monthly increase.
Late April/early May 2026: Core PCE reported at 0.3% monthly and 3.2% annually.
Early May 2026: Federal Reserve signals a likely pause on near-term rate cuts while monitoring inflation.

News Intelligence

Rising inflation means your dollar doesn't go as far. The gas price spike could hit your wallet at the pump. If you're planning a road trip or commute by car, budget a bit more for fuel.

Media Bias

Articles Published:: 4
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 4
Distribution:: Left 0%, Center 100%, Right 0%

Who Benefited

Energy producers and exporters saw higher revenues as oil and gas prices rose sharply in March, increasing receipts for companies and nations linked to fossil fuel production.