US inflation reaches 3-year high at 3.5% amid Iran tensions
Inflation in the US just reached its highest point in three years, with prices rising 3.5% over the past year.
The biggest jump came in March, when costs went up sharply, mainly because gasoline prices spiked due to ongoing tensions in Iran.
This marks the fastest monthly increase since mid-2022, and it's putting more pressure on everyone's wallets.
Gasoline up 24%, real spending 0.2%
Gasoline prices shot up a staggering 24% last month, which nudged consumer spending higher, but once you factor in inflation, that growth is barely noticeable at just 0.2%.
Even when you leave out food and energy costs, core inflation still rose by 0.3%.
Basically, higher fuel costs are making everything feel more expensive.
Federal Reserve holds rates 3.5%-3.75%
With all this going on, the Federal Reserve decided not to raise interest rates this week; they're keeping them between 3.5% and 3.75%.