Data & financial journalist covering global economics and policy
Rising oil prices are now feeding into U.S. inflation, with energy costs driving a sharp increase in headline CPI for March. As crude climbs above $100 per barrel amid Iran war tensions, the divergence between headline and core inflation is complicating the Federal Reserve’s path on interest rates.
The U.S. is a net oil exporter but that does not shield it from global economic shocks.
The Federal Reserve’s latest projections show steady economic growth, persistent inflation above 2% and a slower path to interest rate cuts.
U.S. inflation cooled sharply in November, but the 2.7 percent reading is not considered official after a government shutdown forced changes in how the CPI was calculated.