Key inflation gauge worsened in January, before Iran war lifted gas prices

Associated Press (AP)EN 3 min read 100% complete by By CHRISTOPHER RUGABERMarch 13, 2026 at 01:53 PM

AI Summary

medium article 3 min

A key inflation gauge, closely watched by the Federal Reserve, worsened in January, even before the Iran war impacted gas prices. The Commerce Department reported that prices rose 2.8% in January compared to the previous year, while core prices, excluding food and energy, increased by 3.1%, the highest in nearly two years. The report, delayed by a government shutdown, also indicated monthly price and core price increases. Economists forecast that the war with Iran, which began February 28th and caused oil prices to soar, will likely cause inflation to spike in March and potentially April. The Federal Reserve, which has been keeping interest rates high to combat inflation, is expected to maintain its current rate at its upcoming meeting due to the anticipated inflationary impact of the conflict.

Key Entities & Roles

Key Player Opposition Context

Schaumburg, Ill. ×340% AAA 40% Commerce Department 50% Washington 50% Strait of Hormuz 60% Federal Reserve ×370% Iran ×280%

Keywords

inflation 100% gas prices 80% iran war 70% interest rate 70% federal reserve 70% core prices 60% oil prices 60% economic growth 50% consumer spending 50% strait of hormuz 40%

Sentiment Analysis

Negative

Score: -0.40

Source Transparency

Source

Associated Press (AP)

Classification Confidence

90%

Geographic Perspective

Iran

This article was automatically classified using rule-based analysis.

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inflation gas prices iran war interest rate federal reserve core prices oil prices economic growth consumer spending strait of hormuz

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