The annual inflation rate rose to 3.3% in March, nearly a full percentage point above February’s rate, as energy prices surged due to the war in Iran, according to federal government data released on April 10.
The rise in inflation is significant because it affects the cost of living for households and impacts business operations across sectors. The Consumer Price Index (CPI) showed a monthly increase of 0.9%, marking the highest jump since June 2022.
Nearly three-quarters of the monthly increase was attributed to a sharp rise in gasoline prices, which climbed by 21.2%. This contributed to an overall energy index increase of 10.9% for the month. The food index remained unchanged while shelter costs rose by 0.3%. Other categories that saw price increases included airline fares, apparel, household furnishings and operations, education, and new vehicles.
Conversely, some major indexes such as medical care, personal care, and used cars and trucks declined over the month. On an annual basis excluding food and energy costs—the so-called core index—inflation was up by 2.6%. Shelter costs increased by 3%, medical care by 3.1%, household furnishings and operations by 4%, airline fares by nearly 15%, and recreation by just over two percent compared with last year.
Energy prices overall were up more than twelve percent from March last year: fuel oil jumped more than forty-four percent; gasoline almost nineteen percent; electricity five percent; utility piped natural gas nearly five percent as well. Food prices increased at a slower pace—up about three percent over twelve months.
Stock markets reacted mixedly after the CPI report: Nasdaq and S&P 500 edged higher while Dow Jones Industrial Average fell during Friday morning trading.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. It advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer of NJBIA according to its official website. The association supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, offering advocacy along with practical information and cost-saving benefits designed for business prosperity according to its official website.