Economists predict that the US March CPI may surge by 1%, making it difficult for the Federal Reserve to cut interest rates this year.

CoinFeed reported on April 5th that economists say the sudden surge in gasoline prices, felt by American consumers, will be fully reflected in key inflation data released this week. The US March CPI is expected to rise 1% month-over-month, the largest monthly increase since 2022; core CPI is likely to rise 0.3% month-over-month. The Iran war previously pushed up gasoline prices at US gas stations by about $1 per gallon. The day before the CPI data release, the Federal Reserve's preferred inflation indicator will provide information on pre-war price pressures. Economists expect the core PCE price index to rise 0.4% for the third consecutive month in February, suggesting that even before the conflict, the process of inflation falling back to a more moderate level had stalled.