Dow Jones Steady as CPI Inflation Posts Largest Monthly Gain Since 2022

The Dow Jones (DJIA) is set to open Friday flat following an inflation update from the Bureau of Labor Statistics (BLS).

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In March, the Consumer Price Index (CPI) increased by 0.9% month-over-month, in line with the consensus analyst estimate. On an annual basis, CPI rose by 3.3%, below the estimate of 3.4%. The monthly gain was the largest since June 2022, while the yearly change was the highest since May 2024.

Gas Index Surges 21.2% amid Hormuz Closure

Core CPI, which excludes volatile food and energy prices, came in below expectations. It rose by 0.2% month-over-month and 2.6% year-over-year. Analysts were expecting 0.3% and 2.7%, respectively.

The monthly spike in CPI inflation was largely driven by higher oil and gas prices resulting from the closure of the Strait of Hormuz. Within CPI, gas prices surged 21.2%, “which accounted for nearly three quarters of the monthly all items increase,” said the BLS.

The overall energy index jumped 10.9%. While energy makes up roughly 7% of the CPI basket, its indirect impact on the cost of other goods and services brings its total economic weight closer to 15%.