On April 10, the U.S. Department of Labor announced on Friday that the Consumer Price Index (CPI) in March increased by 3.3% compared to the previous year, significantly higher than February’s 2.4%. Core inflation, excluding food and energy, rose by 2.6%, slightly below market expectations of 2.7%. Energy prices in March increased by 12.5% year-over-year, a sharp acceleration compared with February’s 0.5%. Gasoline prices rose by 18.9%, and heating oil prices increased by 44.2%. The report published on Friday reflects the first impact of the Iran war on inflation in the U.S. The closure of the Strait of Hormuz disrupted shipping and led to higher crude oil and gasoline prices in the previous month. Economists warn that even if the Strait of Hormuz were to fully reopen, elevated energy and commodity prices following the start of the war will not immediately return to their prior levels. Businesses typically respond quickly to higher prices but are slower to lower prices. Stifel’s chief economist Lindsey Piedza said: “Most of these effects may only become evident in one or two months.” (Jin Shi)