Energy Price Hikes Only Exacerbate Persistent Inflation Problem
American Institute For Economic Research·2026-05-02·via All Articles on Seeking Alpha
Summary
The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew at an annualized rate of 8.3 percent in March 2026.
Much of the observed increase over the last two months is related to the ongoing conflict in the Middle East, which has pushed up energy prices.
Core PCEPI grew at an annualized rate of 3.6 percent in March 2026. It grew at an annualized rate of 3.7 percent over the last six months and 3.2 percent over the last year.
Khanchit Khirisutchalual/iStock via Getty Images
By William J. Luther
Oil price spikes matter, but the evidence points to excess nominal spending as the primary source of sustained inflation.
No one will be surprised to hear that inflation has picked
