Energy prices push up inflation, US March PCE up 3.5% year-on-year
The US Personal Consumption Expenditures (PCE) price index rose 3.5% year-on-year in March, driven by soaring energy prices. Core PCE, excluding volatile food and energy, increased 3.2% year-on-year, reaching its highest level since November 2023.
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- 📰 Published: April 30, 2026 at 23:01
- 🔍 Collected: April 30, 2026 at 23:31 (29 min after Published)
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(Central News Agency, Washington, 30th comprehensive foreign report) Data released by the US government today showed that the Personal Consumption Expenditures (PCE) price index, the inflation gauge favored by the US central bank Federal Reserve (Fed), increased by 3.5% in March compared to the same period last year, due to rising energy costs driven by the Middle East war.
According to comprehensive reports from Agence France-Presse and US financial media CNBC, the US Commerce Department stated that the March PCE increased by 3.5% year-on-year, in line with market expectations, but higher than the 2.8% increase in February.
According to the report, the Iran war pushed up oil prices, causing consumers to face higher price pressures in March and posing new challenges for the Fed's decision-making. In addition, US economic growth was lower than expected, but layoffs fell to a decades-low level.
Excluding volatile food and energy prices, core PCE increased by 0.3% month-on-month and 3.2% year-on-year in March, reaching its highest level since November 2023.
Regarding other economic data, the US Commerce Department stated that the seasonally adjusted annualized growth rate of Gross Domestic Product (GDP) in the first quarter of this year was 2%, higher than the 0.5% in the fourth quarter of 2025, but lower than the market's estimated 2.2%.
In addition, the US Department of Labor reported that initial jobless claims for the week ending April 25, seasonally adjusted, were 189,000, a decrease of 26,000 from the previous week, lower than the market's estimated 212,000, and the lowest level since September 1969.
The data was released the day before the Federal Open Market Committee (FOMC) once again decided to keep interest rates unchanged.
Personal consumption expenditures increased by 0.9% month-on-month in March, mainly driven by a sharp rise in oil prices, with gasoline prices currently exceeding $4 per gallon.
In addition, with the resumption of activities after the government shutdown, government spending increased by 4.4%, with federal-level spending growing by 9.3%, which also supported economic growth in the first quarter. (Compiler: Liu Wen-yu) 1150430
According to comprehensive reports from Agence France-Presse and US financial media CNBC, the US Commerce Department stated that the March PCE increased by 3.5% year-on-year, in line with market expectations, but higher than the 2.8% increase in February.
According to the report, the Iran war pushed up oil prices, causing consumers to face higher price pressures in March and posing new challenges for the Fed's decision-making. In addition, US economic growth was lower than expected, but layoffs fell to a decades-low level.
Excluding volatile food and energy prices, core PCE increased by 0.3% month-on-month and 3.2% year-on-year in March, reaching its highest level since November 2023.
Regarding other economic data, the US Commerce Department stated that the seasonally adjusted annualized growth rate of Gross Domestic Product (GDP) in the first quarter of this year was 2%, higher than the 0.5% in the fourth quarter of 2025, but lower than the market's estimated 2.2%.
In addition, the US Department of Labor reported that initial jobless claims for the week ending April 25, seasonally adjusted, were 189,000, a decrease of 26,000 from the previous week, lower than the market's estimated 212,000, and the lowest level since September 1969.
The data was released the day before the Federal Open Market Committee (FOMC) once again decided to keep interest rates unchanged.
Personal consumption expenditures increased by 0.9% month-on-month in March, mainly driven by a sharp rise in oil prices, with gasoline prices currently exceeding $4 per gallon.
In addition, with the resumption of activities after the government shutdown, government spending increased by 4.4%, with federal-level spending growing by 9.3%, which also supported economic growth in the first quarter. (Compiler: Liu Wen-yu) 1150430