The government report also showed that inflation rose 1.2 percent in February-March, compared to a 0.8 percent increase in January-February.
The March inflation figures were the first to capture the full rise in gasoline prices following Russia’s February 24 invasion of Ukraine. Moscow’s brutal attacks have unleashed sweeping Western sanctions on Russia’s economy and disrupted global food and energy markets. According to AAA, the average price of a gallon of gasoline — $4.10 — is up 43 percent from a year earlier, although it has been declining in recent weeks.
Escalating energy prices have resulted in higher transportation costs for shipping goods and components across the economy, which in turn has contributed to higher prices for consumers.
Recent evidence of rising prices will fuel expectations that the US Federal Reserve will aggressively raise interest rates in the coming months to try to curb borrowing and spending and tame inflation. Financial markets are now forecasting much steeper rate hikes this year than Fed officials signaled last month.
