US Economy Grew 2% in the First Quarter as Inflation Rose Due to Energy
Portafolio Journalist 04.30.2026 10:19 Updated: 04.30.2026 10:19
TL;DR
- US economy grew 2% in Q1, lower than the projected 2.2%.
- Consumer spending growth moderated, impacting overall economic expansion.
- Inflation rose significantly, with the PCE price index increasing 3.5% year-on-year.
- Rising energy costs, influenced by geopolitical events in the Middle East, are a key driver of inflation.
- Underlying inflation (excluding food and energy) stood at 3.2%.
- Factors contributing to slowing consumption include a weaker labor market and reduced household savings.
- Concerns exist about the global economy's ability to handle further shocks.