The Fed's preferred inflation gauge rises to a nearly three-year high

Odaily News Data released by the U.S. Department of Commerce on Thursday showed that rapidly rising gasoline prices pushed the Fed's preferred inflation gauge, the annual rate of the PCE price index, to 3.5% in March, the highest level in nearly three years. The data showed that the U.S. monthly PCE price index for March recorded 0.7%, up from 0.4% in February, while the annual rate surged from 2.8% to 3.5%, marking the fastest pace since May 2023. The sharp increase in energy prices, caused by disruptions in oil trade due to the Middle East conflict, was the main driver behind this sudden surge in inflation. (Jin Shi)