Lates News

The U.S. Department of Labor's data released on Friday showed that the Consumer Price Index (CPI) in March increased by 3.3% year-on-year, significantly higher than February's 2.4%. The core inflation rate, which excludes food and energy categories, rose by 2.6%, slightly lower than the market's expectation of 2.7%. Energy prices in March rose by 12.5% year-on-year, a significant acceleration from February's 0.5%. Gasoline prices increased by 18.9% and fuel oil by 44.2%. The report released on Friday for the first time reflected the impact of the Iran war on U.S. inflation. The closure of the Strait of Hormuz disrupted shipping and raised crude oil and gasoline prices last month. Economists warn that even if the Strait of Hormuz reopens fully, energy and commodity prices that rose after the outbreak of war are unlikely to immediately return to previous levels. Companies typically respond quickly when raising prices, but they are slower to lower prices. Lindsey Piegza, Chief Economist at Stifel, said, "Most of these effects may not be evident until one to two months later."