March Saw Highest Consumer Prices in Two Years

Energy prices jumped by 12.5% from a year earlier, up from 0.5% in February.

Consumer prices skyrocketed in March, pushed higher by escalating gasoline prices, reported The Wall Street Journal.

Consumer prices were up 3.3% in March from a year earlier, the Labor Department said, much higher than February’s gain of 2.4%. It was the highest reading in two years, according to WSJ. Prices exclude food and energy categories.

Energy prices jumped by 12.5% from a year earlier, a dramatic acceleration from 0.5% in February. Gasoline prices rose 18.9% and fuel oil surged 44.2%.

The Associated Press reported that it was the largest monthly jump in gas prices in six decades.

According to The Washington Post, consumer sentiment was already deteriorating before Friday’s report. “The University of Michigan’s preliminary April reading showed confidence plunging 11% from March, with every demographic group posting declines. Year-ahead inflation expectations surged to 4.8%, the largest one-month jump since last April. Notably, 98% of interviews were completed before the ceasefire announcement, suggesting the final reading could look somewhat better,” the Post said.

Some economists cautioned that relief is unlikely to reach consumers quickly, even if the ceasefire announced last week holds.

“A big question for now is how long the oil and gas price shock lasts and whether it will lead to a broader, long-lasting inflation boost, similar to what occurred in the spring of 2022 after Russia invaded Ukraine. For now, economists say that it is unlikely the U.S. will see a widespread increase similar to a few years ago, when inflation topped 9%,” AP wrote.

In March, prices for everyday goods were up 2.0% versus a year ago, according to Numerator’s recent report. A similar trend is expected for the comparable categories covered in the Bureau of Labor Statistics’ CPI release.

As gas and diesel fuel prices continue to climb and dominate the news cycle, media coverage has become more positive around the dynamics of fuel retailers, particularly how and why gas prices increase. Read more about how retailer voices are shining through.

The NACS Fuels Resource Center contains backgrounders on key messages and data points related to fueling.