Core inflation rate hit 3.2% in March as first-quarter growth disappointed at 2%

[Zincwarrior]

Inflation increased in March, to 3.5%. The Trump Admin's efforts to reduce costs for the US voter appears to not be working.

Core inflation rate hit 3.2% in March as first-quarter growth disappointed at 2%

Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Fed.

www.cnbc.com

• The core PCE price index, the Fed’s preferred inflation gauge, accelerated a seasonally adjusted 0.3% for the month, pushing the 12-month inflation rate to 3.2%.
• Headline prices rose 0.7%, putting the annual level at 3.5%. All of the readings were in line with consensus.
• Gross domestic product grew at a 2% seasonally adjusted annualized pace in the first quarter, up from 0.5% in the fourth quarter of 2025 but lower than the 2.2% estimate.
• Initial jobless claims totaled a seasonally adjusted 189,000 for the week ending April 25, the lowest since 1969.

Core inflation rate hit 3.2% in March, as expected; GDP grew 2% in first quarter


Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Federal Reserve, according to a batch of reports Thursday that showed economic growth slower than expected and a generational low in layoffs.

The core personal consumption expenditures price index, which excludes food and energy, accelerated a seasonally adjusted 0.3% for the month, pushing the 12-month inflation rate to 3.2%, the Commerce Department reported Thursday. The readings matched the Dow Jones consensus estimates. Core inflation hit its highest level since November 2023.

Including the volatile gas and groceries components saw higher readings, with the monthly gain at 0.7% and the annual rate hitting 3.5%, also in line with forecasts.

In other economic news Thursday, the Commerce Department reported that gross domestic product grew at a 2% seasonally adjusted annualized pace in the first quarter, up from 0.5% in the fourth quarter of 2025 but lower than the 2.2% estimate. The modest growth rate came despite a seeming surge in spending on artificial intelligence and what should have been a boost from the end of last year’s government shutdown.

Also, the Labor Department reported that initial jobless claims totaled a seasonally adjusted 189,000 for the week ending April 25, a decline of 26,000 from the prior week and well below the 212,000 estimate. It was the lowest reading since September 1969 for a labor market that has been in a low-hire low-fire mode for most of the past year.

“This is a split-screen economy,” said Heather Long, chief economist at Navy Federal Credit Union. “Companies and investors involved in AI are on fire. Meanwhile, middle and moderate income households are struggling with high gas prices and inflation that’s back at the hottest level in three years.”

 

[Dekster]

2% growth is actually decent. As for inflation,

 

[1srelluc]

It's transitory....Hey, you people bought that a few years back.

 

[Concerned American]

Inflation increased in March, to 3.5%. The Trump Admin's efforts to reduce costs for the US voter appears to not be working.

Core inflation rate hit 3.2% in March as first-quarter growth disappointed at 2%

Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Fed.

www.cnbc.com

• The core PCE price index, the Fed’s preferred inflation gauge, accelerated a seasonally adjusted 0.3% for the month, pushing the 12-month inflation rate to 3.2%.
• Headline prices rose 0.7%, putting the annual level at 3.5%. All of the readings were in line with consensus.
• Gross domestic product grew at a 2% seasonally adjusted annualized pace in the first quarter, up from 0.5% in the fourth quarter of 2025 but lower than the 2.2% estimate.
• Initial jobless claims totaled a seasonally adjusted 189,000 for the week ending April 25, the lowest since 1969.

Core inflation rate hit 3.2% in March, as expected; GDP grew 2% in first quarter


Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Federal Reserve, according to a batch of reports Thursday that showed economic growth slower than expected and a generational low in layoffs.

The core personal consumption expenditures price index, which excludes food and energy, accelerated a seasonally adjusted 0.3% for the month, pushing the 12-month inflation rate to 3.2%, the Commerce Department reported Thursday. The readings matched the Dow Jones consensus estimates. Core inflation hit its highest level since November 2023.

Including the volatile gas and groceries components saw higher readings, with the monthly gain at 0.7% and the annual rate hitting 3.5%, also in line with forecasts.

In other economic news Thursday, the Commerce Department reported that gross domestic product grew at a 2% seasonally adjusted annualized pace in the first quarter, up from 0.5% in the fourth quarter of 2025 but lower than the 2.2% estimate. The modest growth rate came despite a seeming surge in spending on artificial intelligence and what should have been a boost from the end of last year’s government shutdown.

Also, the Labor Department reported that initial jobless claims totaled a seasonally adjusted 189,000 for the week ending April 25, a decline of 26,000 from the prior week and well below the 212,000 estimate. It was the lowest reading since September 1969 for a labor market that has been in a low-hire low-fire mode for most of the past year.

“This is a split-screen economy,” said Heather Long, chief economist at Navy Federal Credit Union. “Companies and investors involved in AI are on fire. Meanwhile, middle and moderate income households are struggling with high gas prices and inflation that’s back at the hottest level in three years.”

And still just under half of Biden's highest inflation rate reached 9.1 percent in June 2022.