Inflation Research Brief

Energy cost spike bumps up inflation. Mounting costs for gasoline and electricity kept overall inflation elevated over the 12-month period ending in March. The headline CPI measure grew by 3.5 percent during the span, ticking up as the energy index moved into positive territory for the first time since February 2023. Geopolitical conflict, spring-season travel, and energy providers shifting operations amid warmer weather contributed to these higher costs. Fortunately, the seasonality of rising energy prices suggests that such inflationary pressures should stabilize over the short-term.