Inflation was getting worse before Iran war. New PCE price increases show how much.

A key U.S. inflation gauge rose at an 'excessive pace' for the third consecutive month, signaling persistent upside pressure on prices. That persistence complicates the Federal Reserve's effort to quell inflation and increases the likelihood of sustained or tighter policy, raising risks of higher rates and broader market volatility ahead of the Iran war.

Analysis

A key U.S. inflation gauge rose at an 'excessive pace' for the third consecutive month, signaling persistent upside pressure on prices. That persistence complicates the Federal Reserve's effort to quell inflation and increases the likelihood of sustained or tighter policy, raising risks of higher rates and broader market volatility ahead of the Iran war.