The Federal Reserve's preferred inflation gauge rose to its highest level in nearly three years.

Data released by the U.S. Commerce Department on Thursday showed that rapidly rising gasoline prices pushed the Federal Reserve's preferred inflation gauge—the PCE price index—to 3.5% in March, the highest level in nearly three years. The data showed that the U.S. PCE price index rose 0.7% month-on-month in March, up from 0.4% in February, and the annual rate jumped from 2.8% to 3.5%, the fastest pace since May 2023. The Middle East conflict, which disrupted oil trade and caused a sharp rise in energy prices, was the main reason for the sudden surge in inflation. (Jinshi)