00:00U.S. inflation accelerated in March as the Iran war raised gasoline prices,
00:06boosting expectations that the Federal Reserve could keep interest rates unchanged well into next year.
00:12The Commerce Department's Bureau of Economic Analysis said on Thursday
00:16that its personal consumption expenditures price index jumped seven-tenths of one percent in March,
00:22the largest gain since June of 2022.
00:25On an annual basis, PCE inflation shot up 3.5 percent, the biggest rise since May of 2023.
00:33That is well above the Federal Reserve's two percent target.
00:37Inflation was already elevated before the war,
00:40largely because of President Donald Trump's sweeping tariffs.
00:44Meanwhile, the national average price of gas surged 24 percent in March.
00:49Prices at the pump could continue to climb as global oil prices jumped to a four-year high
00:54of more than $126 a barrel on Thursday on concerns that the war in Iran could worsen
01:01and lead to a protracted Middle East supply disruption that could hurt global economic growth.
01:07Prices later retreated.
01:09Brent crude prices have doubled since the start of U.S.-Israeli attacks on Iran,
01:14and West Texas intermediate crude is up about 90 percent
01:18due to the effective closure of the Strait of Hormuz.
01:21Prior to the recent surge in fuel prices, U.S. economic growth was rising.
01:26The Commerce Department said Thursday that U.S. gross domestic product picked up in the first quarter
01:32as businesses boosted investment in artificial intelligence
01:36and government spending rebounded after a crippling shutdown.
01:39It rose at a two percent annualized rate,
01:43though that was below the forecast of analysts polled by Reuters.
01:46The war, however, has seen eroding household purchasing power through inflation.
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