March Sees a Rise in Consumer Prices Due to Surging Energy Costs, Yet Overall Outlook Remains Positive

On Friday morning, the Bureau of Labor Statistics released March’s Consumer Price Index (CPI) report, and its findings were largely anticipated, bringing little surprise to market observers.

The initial headline drew attention to the significant rise in energy prices, which soared by 10.9 percent, contributing heavily to a 3.3 percent increase in the CPI over the past year, with a 0.9 percent rise from February.

However, when excluding volatile energy and food prices, the core CPI rose by a modest 0.2 percent. Notably, some consumer sector prices even saw a decrease, hinting at more nuanced economic conditions.

(emphasis added below)

In the broader context, CNBC described the current inflation scenario as “relatively tame,” particularly when considering vehicle prices and other economic indicators.

Under President Trump, March core inflation remained low and steady

CNBC: “The 0.2% is a little lighter than expected…” pic.twitter.com/iJKNddojqS

— RNC Research (@RNCResearch) April 10, 2026

The consumer price index increased a seasonally adjusted 0.9% for the month, putting the annual inflation rate at 3.3%, pushed by a 10.9% surge in energy costs. Both numbers were in line with the Dow Jones consensus. The annual rate was the highest since April 2024 and up from 2.4% in February.

However, excluding food and energy, core prices rose much less – just 0.2% for the month and 2.6% from a year ago, both 0.1 percentage point below forecast, indicating that underlying inflation was contained. There even were even pockets of outright price declines, as medical care, personal care, and used cars and trucks all fell during the month.

More on the vehicle prices in a minute. The CNBC report linked above even characterized the current inflation picture as “relatively tame.”

And how did the energy spike happen, according to the BLS report? Mostly high gas prices, which were temporarily up before the ceasefire was called in the Iran conflict over the past few days.

The Iran conflict was the story for the monthly inflation reading, as gasoline soared 21.2%, accounting for nearly three-quarters of the headline price increase.

The Trump administration echoes analysts, as the above clip/reporting shows, in pointing out that there’s good news, too, with grocery prices continuing to moderate. That was National Economic Council Dir. Kevin Hassett’s main message, when he appeared on Fox News on Friday afternoon:

Hassett on the inflation report: “There is a lot of good news, especially in groceries. Egg prices are down to about the lowest level they’ve been in years. Beef prices dropped a heck of a lot… and even ticket prices… because of the actions we took against Ticketmaster.” pic.twitter.com/5mrLmy8A49

— Rapid Response 47 (@RapidResponse47) April 10, 2026

American consumers, in any case, don’t seem too spooked by the report, if another CNBC story aired after the news on the consumer price index report is accurate. One analyst on the panel notes that many people are using their 2025 tax refunds… to buy their families a new or used car/truck.

This is a developing story, RedState will provide more information as updates become available.

Editor’s Note: President Trump is leading America into the “Golden Age” as Democrats try desperately to stop it.  

Please help us continue to report on President Trump’s successes. Join RedState VIP and use promo code FIGHT to get 60% off your membership.