The U.S. Department of Commerce reported that the Personal Consumption Expenditures (PCE) price index, a key inflation measure favored by the Federal Reserve, rose to an annual rate of 3.5% in March. This marks the highest level in nearly three years, driven by a significant increase in gasoline prices. The monthly PCE index climbed 0.7% in March, up from 0.4% in February, with the annual rate jumping from 2.8% to 3.5%. The surge in inflation is attributed to sharp rises in energy prices, largely due to disruptions in oil trade stemming from conflicts in the Middle East. This development underscores ongoing inflationary pressures that could influence future monetary policy decisions by the Federal Reserve.