Inflation jumps and gas soars but American consumers seemed to take it in stride
Last week, many Americans focused on the economy, inflation, and how these forces could affect their lives. But it’s almost impossible not to notice that trips to the grocery store or gas station are more painful than last year.
Here’s a snapshot of some of the latest economic data and news and what it potentially means for you.
Core inflation indicator rose to 3-year high
A. basic measure of inflation Gas prices rose in March roseThis is the latest sign that the Iran war is raising the cost of living and delaying progress. interest rate cuts by the Federal Reserve.
The inflation gauge tracked by the Fed rose 0.7% in March from February, a sharp increase from the previous month, the Commerce Department said Thursday. Compared with a year ago, prices increased by 3.5%; this was the largest increase in almost three years.
Excluding volatile food and energy categories, core inflation increased by 0.3% in March compared to February and was 3.2% higher than in the previous year. The annual figure is above February’s reading of 3%.
Gasoline prices have soared, reaching multi-year highs for four consecutive days starting Tuesday. The average price per gallon of regular gasoline reached $4.39 on Friday, the biggest overnight increase since the start of the war, and prices continued to rise on Saturday.
The US economy grew by 2 percent in the January-March period
USA economy It accelerated in early 2026 and expanded at a modest 2% pace from January to March after rebounding from last fall’s 43-day federal government shutdown. But the view is blurred like this: Iran war.
The Commerce Department reported Thursday that gross domestic product (the nation’s production of goods and services) is recovering from weak 0.5% growth in the final three months of 2025. Federal government spending and investment increased at an annual rate of 9.3% in the first quarter and contributed more than half a percentage point to growth, following a decline of 1.16 percentage points in the fourth quarter of 2025.
US consumer confidence rose in April
WE consumer confidence It rose modestly in April despite growing concern about rising energy prices caused by the war in Iran.
The Consumer Confidence Index rose to 92.8 in April from 92.2 in March, the Conference Board said Tuesday.
Although the indicator measuring American consumers’ confidence has been on the rise over the past two months, the indicator is still near its lowest level since the Covid-19 outbreak.
Survey respondents’ comments about prices, oil, gas and war increased in April; The national average for a gallon of gas in the U.S. rose 30 cents last week to $4.43.
