{"text":[[{"start":11.44,"text":"US inflation jumped to its highest level in two years in March driven by a historic surge in petrol prices, knocking consumer sentiment to record lows as the fallout from Donald Trump’s war in Iran hits the world’s top economy. "}],[{"start":28.79,"text":"Spiralling prices at the pump pushed the Bureau of Labor Statistics’ consumer price index to 3.3 per cent in March, the highest level since May 2024, and up sharply from a year-on-year rise of 2.4 per cent in February. "}],[{"start":47.08,"text":"The University of Michigan’s closely watched index of consumer sentiment, meanwhile, tumbled to its lowest level on record amid rising fears that high prices will continue to squeeze Americans over the coming year. "}],[{"start":61.87,"text":"“The conflict is putting a lot of pressure on primarily gasoline prices,” said Mike Reid at RBC. “And if you’re spending more on gasoline, you’re going to have to cut back elsewhere.”"}],[{"start":75.00999999999999,"text":"Friday’s gloomy figures provided the starkest indication yet of how the spillover effects of the Middle East conflict that erupted in late February are now taking a heavy toll on American consumers. "}],[{"start":89.24999999999999,"text":"With just over six months to the US midterm elections, the domestic political risks to Trump are mounting. Polling shows a majority of Americans oppose the war and the president’s approval ratings are hovering near record lows. "}],[{"start":104.23999999999998,"text":"That adds to the importance for Trump of high-stakes talks in Pakistan this weekend, at which vice-president JD Vance will push for a lasting ceasefire. "}],[{"start":116.82999999999998,"text":"Vance said on Friday he expected to hold “positive” talks with Iran but within a few hours Mohammad Bagher Ghalibaf, one of Iran’s top wartime leaders, said Tehran would not take part unless Israel agreed to end its strikes against Hizbollah in Lebanon and the US agreed to unfreeze Iranian assets held overseas. "}],[{"start":140.51999999999998,"text":"“These two matters must be fulfilled before negotiations begin,” Ghalibaf said in a post on X. "}],[{"start":148.7,"text":"Ghalibaf’s warning highlighted the significant hurdles to reaching a diplomatic settlement, with the discussions between the adversaries due to begin in Islamabad on Saturday. "}],[{"start":160.08999999999997,"text":"A fragile two-week truce reached this week has already come under strain over a host of disagreements, including whether it applies to Lebanon and the fate of Iran’s stockpile of highly enriched uranium."}],[{"start":174.67,"text":"Iran has also refused to loosen its grip on the Strait of Hormuz, which transported a fifth of the world’s oil before the conflict began in late February. Only a handful of ships have passed in recent days, despite Trump’s insistence that Iran reopen the waterway. "}],[{"start":192.75,"text":"Oil exports through the strait have fallen and are running at only 8 per cent of the normal level, according to Goldman Sachs."}],[{"start":201.4,"text":"The war’s impact on energy prices has been stark. US crude prices jumped from about $70 a barrel when the conflict began to more than $110 a barrel in recent weeks. "}],[{"start":216.03,"text":"Refineries are also scrambling to secure cargoes for immediate delivery, sending some oil grades including a key North Sea blend soaring this week to levels above those recorded at the eve of the 2008 financial crisis. "}],[{"start":232.62,"text":"Friday’s BLS report showed US petrol prices rose by 21.2 per cent in March compared with the previous month — the biggest monthly increase since at least 1967."}],[{"start":246.46,"text":"The University of Michigan’s consumer sentiment index fell to a record low of 47.6 in April, down from a reading of 53.3 in March. Its index of inflation expectations showed Americans expect prices to rise by 4.8 per cent over the next year, up from 3.8 per cent a month ago. "}],[{"start":null,"text":"
"}],[{"start":269.55,"text":"Core inflation, stripping out volatile food and energy prices, rose slightly less than expected to 2.6 per cent from 2.5 per cent the previous month, according to the BLS, suggesting the impact of higher energy prices has yet to fully pass through to other areas of the economy. "}],[{"start":288.59000000000003,"text":"Analysts warned of increases in prices in other sectors in the coming months as the fuel price surge spills over into other areas such as transport and agriculture. "}],[{"start":301.23,"text":"“So far, the shock has had little impact on non-energy prices. However, this is likely to change soon,” said Bernd Weidensteiner at Commerzbank. "}],[{"start":312.96000000000004,"text":"IMF managing director Kristalina Georgieva warned on Thursday there would be “no neat and clean return to the status quo” even if the truce holds."}],[{"start":325.24,"text":"Minutes released this week showed Federal Reserve officials debated whether a prolonged conflict would warrant interest rises or cuts as they grappled with its impact on prices and the jobs market."}],[{"start":339.37,"text":"Steven Blitz, chief US economist at GlobalData TS Lombard, said the war meant the Fed was caught in a situation in which it “can’t go out now and cut. They don’t know the permanence of this [fuel] jump.”"}],[{"start":353.27,"text":"“Whatever happens with the ceasefire, there will be a risk premium in energy prices that did not exist before the war,” he added."}],[{"start":372.65999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1775892146_3829.mp3"}