Inflation continued to retreat in March as energy prices pulled back from a year ago, when they began to spike due to Russia’s invasion of Ukraine.
But swings in gasoline and other energy mask price pressures that, while easing, remain under the surface, economists said.
“It’s improving and the economy is cooling, but it’s still far from tepid,” Diane Swonk, chief economist at KPMG, said of inflation.
The consumer price index, a key gauge of inflation, rose by 5% in March relative to 12 months earlier, the U.S. Bureau of Labor Statistics said Wednesday.
The index measures price changes across a broad basket of consumer goods and services, like food, housing, electronics and recreation.
The latest annual reading declined from 6% in February. The reduction doesn’t mean prices fell; they’re still rising, just more slowly than a year ago.
A little bit of inflation is good — policymakers aim for about 2% a year, according to a different but related measure.
While still “painfully high,” inflation has eased significantly from its peak of more than 9% in June 2022, said Mark Zandi, chief economist of Moody’s Analytics. Inflation seems poised to fall back to policymakers’ target by this time next year, barring any unforeseen derailments, he said.
“Inflation is fundamentally moderating,” Zandi said. “And all the trend lines look good.
“I can say that with increasing confidence.”
What drove inflation in March 2023
Housing was a “notable” inflation driver in March and over the past year, according to the BLS.
The shelter index increased 8.2% in the last year, accounting for over 60% of the total increase in consumer prices after stripping out the volatile energy and food categories. Other notable annual increases include motor vehicle insurance (15%), household furnishings and operations (5.6%), recreation (4.8%) and new vehicles (6.1%), the bureau said.
“There are a lot of categories that continue to see outsized increases month after month,” said Greg McBride, chief financial analyst at Bankrate. “And [some of] those are categories that are staples in the household budget.”
“We’ve got to see improvement in terms of moderating price pressures across a broad range of categories,” he added.
The overall energy index is down 6.4% in the past year.
Average U.S. gasoline prices topped out over $5 a gallon in June 2022, following a surge in oil prices after Russia invaded Ukraine in February 2022. The price increase for both regular motor gasoline and diesel fuel from February to March 2022 was the largest monthly gain on record, according to the U.S. Department of Transportation.
It’s improving and the economy is cooling, but it’s still far from tepid.
Housing accounts for the largest share of average household expenses. Elevated inflation in housing has therefore served to prop up CPI readings.
There’s been a “huge” moderation in newly signed rent agreements, said Paul Ashworth, chief North America economist at Capital Economics. But price changes generally take nine months to a year to flow into CPI reports, due to how economists calculate price changes in the housing category, he said.
“The big uncertainty is: We know housing costs should start to moderate … soon [in the CPI], but none of us know exactly when,” Ashworth said.
The food at home index (i.e., grocery prices) fell 0.3% in March, its first monthly decline since September 2020. That’s due to a combination of things like lower prices for diesel, a key component in transporting food to stores, and easing supply-chain issues, Zandi said.
“It signals the food inflation fever has been broken,” Zandi said.
Why inflation popped up and remains high
Consumer prices began rising rapidly in early 2021 as the U.S. economy started to reopen after the pandemic-related shutdown. Americans unleashed a flurry of pent-up demand for dining out, entertainment and vacations, aided by savings amassed from government relief.
Meanwhile, the rapid economic restart snarled global supply chains, a dynamic exacerbated by Russia’s invasion of Ukraine. In other words, supply couldn’t keep up with consumers’ willingness to spend.
Inflation was initially siloed in categories of physical goods like used cars and trucks. But the dynamic has morphed.
“The supply shortage was very much a 2021, 2022 story,” Ashworth said.
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Now, inflation is more a story of “services,” which includes categories like haircuts, auto insurance, airline fares, medical care and rent, economists said.
That’s largely due to conditions in the job market, characterized by historic demand for workers, low unemployment and strong wage growth, economists said. Higher labor costs pressure businesses to raise their prices, especially in labor-intensive service industries, economists said. While the labor market remains hot, it has been gradually cooling.
The U.S. Federal Reserve has been raising interest rates aggressively to tame inflation. This mechanism aims to increase borrowing costs for consumers and businesses, who pare back spending, thereby cooling the economy and labor market and, ultimately, inflation.
Recent turmoil in the banking sector is expected to reduce banks’ willingness to make loans — and those tighter credit conditions are expected to further cool the economy and help tame inflation.
That credit tightening will likely help cool inflation in the second half of the year, Swonk said.
Delta Air Lines is teaming up with Dutch aviation startup Maeve Aerospace to take its idea for a more advanced, fuel-sipping hybrid-electric aircraft powertrain from the drawing board and into regional commercial service.
Delta Air Lines announced a new partnership with Maeve Aerospace meant to accelerate certification and deployment of the startup’s next-generation hybrid-electric regional aircraft – a move that could reduce the company’s fuel consumption on those routes by up to 40% compared to ICE-only assets.
“Delta is proud to collaborate with Maeve to help shape the next chapter of regional aviation and accelerate progress toward a more sustainable future of flight,” said Kristen Bojko, Vice President of Fleet at Delta Air Lines. “As we work toward the next generation of aircraft, we look to partners like Maeve who embody the bold, forward-thinking innovation we champion at Delta – solutions that advance aircraft design, enhance operational efficiency, elevate employee and customer experiences, and cut emissions. While driving toward transformative technologies that strengthen our network and redefine regional air travel remains a key priority, we’re equally focused on safety and a more sustainable future of flight.”
Maeve introduced its M80 hybrid-electric, 80-seater aircraft in November of 2023 as a sustainable, cost-effective aircraft designed to satisfy the operational needs of the majority of regional operators and airports.
The M80’s electric motors can also be used during taxiing operations on the ground to reduce surface-level carbon emissions while also supporting a more efficient integration of more electric aircraft systems. Two facets of the aircraft’s designs that are specifically called out by Delta’s press material as being of extreme interest to the commercial carrier.
“It’s a privilege to have Delta as a partner in the development of groundbreaking technologies and processes,” shared Martin Nuesseler, Chief Technology Officer at Maeve Aerospace. “Their expertise in fleet innovation and commitment to aviation sustainability is unmatched, and we’re proud to work together to tailor the MAEVE Jet for the US market.”
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Utilities, state governments, and private developers are racing to roll out faster, more powerful EV chargers. At the same time, automakers and tech giants across the globe are pouring billions into R&D to develop batteries that can take ever-higher levels of power. But what if there’s a better, easier, cheaper, and more effective way to cut emissions?
What if, instead of faster chargers, we pushed for SLOWER gas pumps?
I want to start this conversation by pointing out that there’s a precedent for this idea. Back in 1993, the Environmental Protection Agency (EPA) finalized a rule that limited the rate that gas service stations could pump fuel to a maximum of 10 gallons per minute (gpm), with the stated goals of reducing evaporative emissions and promoting safety by ensuring the integrity of the nation’s refueling infrastructure.
The basic idea is this: instead of “just” asking for utility rate-payers and State or local governments to help cover the costs of rolling out an increasingly huge EV charging infrastructure that will never be big enough to convince the red hats it’s ready, anyway, we focus our lobbying efforts on slower gas pumps in blue states. Like, significantly slower gas pumps.
By reducing the maximum pumping speed from 10 gpm to 3 gpm, we could increase the minimum time to fill up a half-ton Ford F-150’s 36 gallon fuel tank (yes, really) from under four minutes to nearly twelve (12). Factor in the longer wait times ICE-vehicles would have to endure waiting in line to refuel, as well, and we’re talking about a 20-30 minute turnaround time to go from just 10% to a usable 80-or-90% fill.
You don’t have to take my word for that, though. You can take big oil’s. “If I think about a tank of fuel versus a fast charge, we are nearing a place where the business fundamentals on the fast charge are better than they are on the (fossil) fuel,” BP head of customers and products, Emma Delaney, told Reuters.
Those fundamentals revolve around amenities. If you’re popping into a gas station for a three or four minute visit, you’re probably getting in and out as fast as you can. But if you’re there a bit longer? That’s a different story. You might visit the rest room, might buy a snack or order a coffee or suddenly remember you were supposed to pick up milk on your way home, even – and that stuff has a much higher margin for the gas station than the dino-juice, totaling 61.4% of all fuel station profits despite being a fraction of the overall revenue.
What do you guys think? Does this low-cost, high-impact idea to cut the time delta between refueling your gas car and recharging your EV have legs? What concerns do we need to address before we take it to Gavin and JB? Let us know, in the comments!
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John Deere is quick to point out that these new GX side-by-side utility vehicles are not golf carts. Fair enough – while they;re not quite in the same go-anywhere league as Deere’s TH 6×4 Gas or TE 4×2 Gators, the Gator GX and GX Crew offer more than enough capability to handle just about anything you’ll find on a typical campus, golf course, or job site.
To that end, the sturdy composite dump bed, comfortable and supportive high-back foam seats seem credible enough at first glance. And, if you give the new Deere UTVs a second glance, you’ll see a 367-L (13-cu ft) cargo box can haul more than 800 lbs. (~365 kg) of mulch, nursery plantings, building supplies, firewood, animal feed, or tools.
These are serious machines, in other words, ready to get down and do some serious work, but without the noise, vibration, and harmful exhaust emissions of gas.
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“The Gator GX lineup offers property owners the opportunity to increase productivity around their properties with less noise, less maintenance and more versatility,” said John Deere Go To Market Manager Eric Halfman. “These utility vehicles are intuitive and durable while offering users the comfort, reliability and convenience they expect from a John Deere Gator.”
The key component in the new GX and GX Crew is the new, 5.4 kWh, 51.2V lithium-ion battery that sends power to a high-efficiency electric drive motor with responsive torque and smooth acceleration. An onboard charger allows for convenient charging anywhere with a standard, grounded 120 outlet, eliminating the need for handling fuel or trips to the gas station and fully charging the 5.4 kWh battery over night, with more than 8 hours of continuous operation on tap that’s extendable with clever use of the new Deere’s regenerative braking.
These new electric Gators are available in classic John Deere green or grey metallic, and start at $17,499 with a whole suite of available accessories to make upfitting a breeze. The company says they’ll be available for order at your local John Deere TriGreen dealer in Q1 of 2026.
Electrek’s Take
I imagine that applying the Gator name to a vehicle that I’d call a glorified golf cart makes me feel something similar to what the Mustang guys feel whenever they see a Mach-E drive past. As such, I’ll give myself the same advice I give them: the people who make the thing decide what makes it worthy of the name, not you.
As such, I’d better get used to it. The good news there, of course, is that it seems like Deere’s latest Gator is going to be more than good enough to win me over. Eventually.
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