Here’s where prices rose the most in March

Inflation ticked higher once again in March, with consumer prices up 0.4 percent over the previous month and 3.5 percent compared to one year earlier.

The latest data marks the third month in a row that the consumer price index (CPI), a closely watched gauge of inflation, has come in hotter than expected, likely throwing cold water on hopes that the Federal Reserve would begin cutting interest rates soon.

Here’s where prices rose the most last month:

Car insurance, repairs see ‘outsized increase’

Car insurance and repairs showed some of the biggest annual increases. Motor vehicle insurance costs were up 22.4 percent over the last year and 2.6 percent in the past month, while repair costs rose 11.6 percent annually and 3.1 percent in March.

Mark Zandi, chief economist at Moody’s Analytics, described this “outsized increase” in car insurance and maintenance as a “big surprise.”

“This reflects higher new vehicle prices,” Zandi said in a post on X, the platform formerly known as Twitter. “The good news is vehicle prices have rolled over, which will soon take the steam out of insurance and maintenance cost.”

At-home elder care, video discs post largest increases on record

The cost of at-home care for disabled and elderly people rose 14.2 percent over the past year, the largest annual increase for the category on record. In March alone, at-home care costs were up 5.9 percent.

Video discs and other media also posted their largest increase ever, with costs rising 30.1 percent annually and 14.7 percent last month.

Frozen drinks, home repairs tick up

The cost of frozen noncarbonated juices and drinks fell by 0.1 percent in March but was up 27.5 percent year-over-year. This represents a slight improvement compared to earlier this year, when frozen drink prices saw a 10 percent jump in January alone and 29 percent increase annually, according to Newsweek.

The cost of household repairs also saw a sizable annual increase last month, with prices rising 18 percent year-over-year.

Housing, gas drive overall rise in inflation

Housing and gas costs were key drivers of the uptick in inflation last month, contributing more than half of the increase in overall inflation.

Shelter costs were up 0.4 percent in March and 5.7 percent year-over-year, accounting for over 60 percent of the 12-month increase in all items excluding food and energy costs. Gas prices rose 1.7 percent last month, for a 1.3 percent annual increase.

“Inflation continues to moderate, and the only thing keeping it from the Fed’s target is shelter costs, which will recede, but nonetheless, the Fed won’t move until this forecast is all but certain,” Zandi said on X.

“Most worrisome is the recent run-up in oil and thus gasoline prices,” he added. “Nothing does more damage to the economy more quickly, as higher oil prices saps consumers’ purchasing power, undermines sentiment, and juices up inflation expectations.”