Inflation surged in March due to Iran war and tariffs

War-related price pressures worsened inflation in March, which the Federal Reserve was already struggling to regulate, reports Colby Smith for The New York Times.

The Consumer Price Index, or CPI, rose to 3.3% in March, making the Federal Reserve cautious of cutting interest rates. This is the highest monthly gain, 0.9%, since the post-pandemic inflation surge in June 2022.

The Consumer Price Index rose to 3.3% in March 2026. (Click to enlarge)

“Core” inflation, which doesn’t include volatile food and energy prices, rose to 2.6%, an increase from 2.4% last month, which isn’t as alarming to the Federal Reserve.

Policymakers worry that rising energy prices will “spill over into other sectors, affecting inflation more persistently,” Smith reports.

The Federal Reserve is also worried about businesses and manufacturing companies scaling back on hiring to offset rising input costs, potentially threatening the labor market, reports Smith.

The Bureau of Labor Statistics data listed below illustrates how commodity prices reacted to the war before last week's temporary cease-fire.

• International oil benchmark rose 50%, now down to 30% higher than prewar
• Gas prices rose 40% since February
• Energy index rose 11%
• Fuel oil rose 30.7% over the last month
• Other motor fuels including diesel rose 30.8%
• Airfares rose 2.7%, up 14.9% from a year prior

Excess inflation in the core goods category can be explained by recent tariffs, according to researchers at the Federal Reserve.

“Without evidence that inflation is in retreat, the Fed will likely find it hard to justify cutting rates below the current 3.5 percent to 3.75 percent level,” Smith reports. “What could prompt them to act sooner, however, is if the labor market deteriorates rapidly.” 

Maine's bill to pause larger data center projects awaits governor's approval; ban would be the first of its kind in U.S.

Maine's data center bill would pause planned projects in two rural
towns for 18-months. (Photo by Troy Mortier, Unsplash)

If Maine's new data center bill becomes law, the state will become the first in the country to push pause on large data center construction. 

"The Maine Senate took a final vote on April 14 to enact first-of-its-kind legislation banning large data centers in the state until November 2027," reports Julia Tilton of The Daily Yonder. The bill would halt data centers that require 20 megawatts or more of power, including two already planned in the rural towns of Jay and Limestone.

The Maine legislation "would also establish a study group to examine the impact of such facilities and recommend legislative guardrails," reports Jenna Russell of The New York Times. Maine lawmakers have already made data centers "ineligible for certain business tax exemptions." 

Maine Gov. Janet Mills has yet to sign the bill into law, and it's unclear whether she will, given that it would mean halting data center plans already in the works. "On April 10, the governor said that a data center proposed at a retired paper mill in Jay, Maine, must be exempt from the ban while speaking to the press at an event in Bangor, Maine," Tilton explains. "An amendment with that carve-out failed to pass the legislature." The current bill doesn't include any exemptions. 

Like many New England residents, Mainers already deal with a fragile grid and pay some of the highest electricity rates in the country. Advocates of the ban say the moratorium is needed to prevent further increases in electricity costs and to protect communities from environmental hazards associated with AI data centers, such as noise and excessive water use, Tilton reports. Advocates also point to the relatively few jobs data centers produce, even as they gobble up vast resources.

Mills, who is facing a heated Democratic primary race for the U.S. Senate, has "ten days to veto the legislation, sign it into law or allow it to become law without her signature," Russell reports. "President Donald Trump has threatened to sue states and withhold funding if they pass laws restricting the AI growth."

When dialysis treatment centers close, rural patients have no choice but to drive further for care

After the Chadron dialysis center closed, Pieper's 
treatment travel time tripled. (KFF Health News photo)

Rural residents who require dialysis treatment to stay alive are having to drive longer distances for care as smaller hospitals and clinics shed unprofitable services to stay afloat, reports Ariella Zionts of KFF Health News.

When Chadron Hospital shuttered its dialysis center, which served Nebraska residents in the state's far western panhandle, Mark Pieper became one of the many displaced patients who would have to find another dialysis center for treatment.

Because the human body cannot survive without kidney-like functions that filter toxins, remove excess fluid and balance electrolytes, dialysis cannot be rescheduled or skipped. When faced with the closure of their dialysis center, renal patients like Pieper have two choices: Travel for treatment or die.

"Pieper eventually found treatment in Scottsbluff, which, with about 14,000 residents, is the biggest city in the rural Panhandle region," Zionts writes. "The hour-and-a-half drive will triple his time on the road to more than nine hours each week."

Chadron Hospital discontinued its dialysis service despite the $219 million in federal money Nebraska will receive this year from the Rural Health Transformation Program. But RHTP awards aren't meant to "help existing services stay afloat," Zionts explains. Instead, they are earmarked to help rural medical centers "explore new, creative ways to improve rural health." Only 15% of RHTP funds can be used to pay for patient care.

Chadron Hospital was "losing $1 million a year on its dialysis service due to low reimbursement rates that didn’t cover operational costs," Zionts reports. Nephrologist Mark Unruh said the "dialysis closure in Chadron reflects a wider trend of staffing and funding challenges."

Preventing kidney failure is one of the best ways rural areas can change what rural dialysis patients like Pieper are facing now, Unruh told KFF Health News. "He pointed to a tele-education program that helps primary care doctors in rural and other underserved areas prevent end-stage renal failure."

A small town in western Mass. may be the 'canary in the coal mine' for cash-strapped municipalities across the U.S.

Anti-override activists insisted South Hadley town officials need
to address inefficiencies instead of raising taxes. 

After weeks of intense debate and campaigning, residents of South Hadley, Massachusetts, shot down a proposed 50% property tax increase, reports Scott Calvert of The Wall Street Journal. “South Hadley is a warning sign for financially strained municipalities across the U.S."

By 65% to 34% vote, residents from this small community rejected a "measure to allow the western Massachusetts college town to raise $11 million in new property taxes through what is called an override," Calvert explains. "A $9 million proposal also failed."

Override proponents said the town needed the cash infusion to address its current $3 million deficit, fund school operations and address rising costs. Calvert writes, "Override foes said a hefty property tax jump would overburden residents, particularly seniors."

Rudy Ternbach, who led the anti-override group Alliance for Fair Taxes, told the Journal, “Voters do not want to try and fix the government by increasing taxes on those least able to pay. They want more efficiencies in government and less taxes.”

South Hadley’s financial squeeze, partially due to a 42% increase in healthcare costs and declining state aid, may be part of a national trend, Calvert reports. Many municipalities are draining the last of their pandemic aid even as costs continue to rise.

Ternbach wants the town to "extract more money from Mount Holyoke College. . . which is largely tax-exempt," Calvert writes. "Both sides in the override debate want the college to do more."

Without additional taxes, local officials say, "there will be deep cuts: no school sports or extracurriculars and slashed Advanced Placement offerings, along with hits to police and public-works staffing," Calvert adds.

Chris Morrill, an expert in public finance, told Calvert, "It’s really a preview of what communities across the country are going to face. I think South Hadley’s perhaps the canary in the coal mine.” 

Ag round-up: Nearly 70% of farmers can't afford fertilizer; union and JBS reach deal; real help for stressed farmers

Share of farmers unable to afford all required fertilizer. (American Farm Bureau Federation graph)

Nearly 70% of American farmers report they can't afford all the fertilizer they need this season because of increased input prices due to the war in Iran and an already stressed farm economy, according to an April survey of 5,700 farmers by the American Farm Bureau Federation. "Farmers in the Southern region reported the greatest difficulty securing fertilizer, with 78% unable to afford all needed inputs this season," reports Faith Parum of AFBF. "Producers in the Northeast and West also reported significant challenges, with 69% and 66%, respectively, unable to afford all required fertilizer, compared to 48% in the Midwest.”

In an effort to drill down into why fertilizer prices have increased so dramatically since 2021, the U.S. Department of Agriculture is "working with the Department of Justice and the Federal Trade Commission on ongoing investigations into fertilizer and other agricultural input costs," reports Chris Clayton of Progressive Farmer. USDA Deputy Secretary Stephen Vaden has "continued his criticisms about concentration in the fertilizer industry, calling out The Mosaic Company for announcing it will close phosphorus mines in Brazil. . . . Vaden argued the global market is signaling a need for more supply -- not less. He questioned why a major producer would scale back output under those conditions."

The Greeley plant can process roughly 6,000
cattle per day. (Photo by L. Angharad) 

The local union representing roughly 3,800 beef plant workers in Greeley, Colorado, and meatpacking giant JBS announced a new labor contract agreement early this week, reports Patrick Thomas of The Wall Street Journal. Beef plant workers went on strike on March 16, "seeking higher wages and other workplace changes. . . . The Colorado plant can slaughter about 6,000 cattle a day, representing roughly 5% of U.S. beef-processing capacity." The new agreement includes worker wage increases through 2027 and protects employees from having to pay for their own required protective equipment. The last slaughterhouse strike happened at a Minnesota Hormel plant in 1985. 

Despite the multiple pain points for American soybean farmers in 2026, some of the rising input costs and sinking soybean prices have evolved over the past several years -- only to be exacerbated by tariff levies and the war with Iran, report Eric Ferkenhoff of Lee Enterprises and Josh Kelety of The Associated Press. "Costs, such as equipment, have crept up over time while soybean prices have stayed low." Doug Bartek, a fifth-generation farmer, told reporters, "Our biggest struggles are our inputs, be it fertilizer, seed, chemical or parts. There has been so much drastic markup in all of these. And I just kind of feel like the farmer’s kind of painted in the corner." Many Midwest soybean producers share Bartek’s worries.

Real Farmer Care wants to give farmers the means to
care for themselves. (Graphic by A. Dixon, Offrange)

Are you a farmer in need of some downtime? Do you know a stressed-out farmer who might be forgetting to care for themselves because they're tending to everything else? If either answer is yes, consider nominating yourself or another farmer-in-need-of-care for one of Real Farmer Care's $200 microgrants, writes Nicole Caruth for Offrange. "Think a stress-relieving massage, a pair of sturdy work boots, or just a dinner outing with friends. The grants are small, but can potentially have a big impact." From squeezing tariffs to eye-popping fertilizer costs, U.S. farmers are having a rough year. The brief nomination form is here. 

A prairie town in Oklahoma is slated to become the country's biggest aluminum producer

The Inola smelter is expected to produce 750,000 tonnes 
of aluminum per year. (Modern Metals photo)

"Hay Capital of the World" is how many residents of Inola, Oklahoma, describe their small town of roughly 1,800 people. But these locals could "soon have another moniker to consider: America’s Aluminum Epicenter," reports Ryan Dezember of The Wall Street Journal. The prairie town was "selected as the site for the first new aluminum smelter in the U.S. since 1980. Construction is expected to cost more than $4 billion and begin by year-end. It is expected to employ about 1,000 workers once complete."

Over the past 50 years, the U.S. relinquished its dominance in primary aluminum production to China, as American producers closed their smelters amid rising electricity costs. Dezember adds, "A smelter can consume as much power as a large U.S. city."

Currently, U.S. businesses import most of their aluminum. The country has "just four smelters [that] make the primary aluminum necessary in many defense and aerospace applications," Dezember writes. "The planned smelter would more than double the U.S.’s smelting capacity."

 

Before choosing the Inola site, Emirates Global Aluminum (EGA) and Chicago-based Century Aluminum, the two companies behind the smelter project, considered "45 sites in more than two dozen states," Dezember reports. "Electricity costs, which make up more than one-third of production expenses, were paramount."

McClellan-Kerr Arkansas River Navigation System, in green, is the 
most westerly inland river system in the U.S. (ODOT map)

In addition to affordable electricity from natural gas and hydropower, the Inola location offered "business-friendly regulation, an ice-free port deep inland, as well as an aerospace industry and other big aluminum consumers," Dezember explains. The Inola smelter site is also near the McClellan-Kerr Arkansas River Navigation System, which connects New Orleans to the Great Plains by way of the Mississippi River.

EGA and Century Aluminum say the smelter "will take at least three years to build," Dezember reports. Once completed, the smelter is expected to run for decades.

Faced with the possibility of running out of money, the U.S. Postal service asks Congress to consider 'drastic measures'

Changes to USPS mail delivery have an outsized
impact on rural Americans. (Photo by D. Trinks, Unsplash)

Expensive delivery obligations and government constraints both contribute to the U.S. Postal Service's deepening financial woes. "In testimony to Congress last month, David Steiner, the postmaster general, delivered a dire warning," reports Adam Sella of The New York Times. "Without drastic measures, he said, the U.S. Postal Service could run out of cash in less than a year."

Some of the "drastic measures" Steiner outlined included reducing service days from 6 to 5, dropping "unprofitable routes," and closing some smaller post offices, Sella writes. All three changes would have an outsized impact on rural communities that other carriers, such as FedEx and UPS, avoid due to higher costs.

A large part of the agency's financial turmoil can be blamed on what Congress has tasked it with doing, which doesn't create a profitable business model (which is why UPS and FedEx don't do it), and federal limitations on its financial options, including pricing and pension investments.

For instance, USPS is supposed to be financially self-sufficient while meeting its universal service obligation, which requires it to deliver to everyone in the United States at a reasonable price, Sella explains. "In 2022, Congress added a six-day-a-week delivery requirement. . . .That commitment has cost the agency money: more than $6.5 billion a year."

USPS is also restricted on pricing. "It must get approval from an independent regulatory commission, which limits the agency’s ability to raise prices," Sella reports. Congress also limits its borrowing power, which means it can run out of money.

USPS leadership isn't allowed pension portfolio flexibility, which could have a dramatic impact on its bottom line. Sella explains, "The Postal Service is only allowed to invest its retirement funds in Treasury notes. The Postal Service’s Office of Inspector General estimated in 2023 that USPS retirement funds would have been worth approximately $800 billion more if they had been able to be invested in a mix of 60% stocks and 40% Treasury bonds."

Meanwhile, USPS has turned to one of its few reliable revenue streams: postal price increases. "The commission approved a temporary surcharge of 8% on packages, in light of rising fuel and transportation costs," Sella reports. The Postal Service also requested a 5% increase in first-class mail rates. "That means first-class mail 'forever' stamps would increase from 78 cents to 82 cents."

Boaters are wearing helmets for protection against 'flying fish'

Asian carp are invading the Mississippi River and
boaters' personal space. (Photo by Megs Harrison, Unsplash)

Asian carp, or "flying fish," are injuring boaters throughout the Midwest and eating up the food supply of native fish in the Mississippi River, reports Jeanne Whalen of The Wall Street Journal.

Able to jump as high as 10 feet out of the water, these carp are easily spooked by motors and have given boaters black eyes
and broken noses, Whalen reports.

Asian carp came to the U.S. from China and Russia in the ‘70s to regulate algae blooms in ponds and wastewater treatment plants, Whalen explains. Due to flooding, they escaped confinement, spread into the Mississippi River Basin, and exponentially reproduced into dozens of rivers.

If they breach the Great Lakes, they threaten the region’s walleye, bass and trout, which provide the fishing industry $5 billion annually, Whalen adds.

The governors of Michigan and Illinois are urging the federal government to unfreeze the funding for a river barrier to keep the fish out of Lake Michigan, reports Whalen. An additional deterrent could be blaring speakers underwater to distract the carp.

While the public waits for federal help to detain the carp, they have been creating their own solutions such as wearing helmets while boating, competing in contests to catch the jumping fish, or creating new recipes to eat them, explains Whalen.

The Illinois Department of Natural Resources has officially rebranded the fish as Copi, short for copious, in hopes consumers find them more appealing. “Fisherman and chefs report that Asian carp are actually delicious, though they are so bony they don’t make good filets. Chefs often grind them up and turn them into fish cakes,” Whalen adds.

As health care insurance costs continue to climb, farm bureau health plans offer a lower cost alternative

Farm Bill health care plans have been offered in Tennessee
for over 75 years. (Tennessee Farm Bureau photo)

Affordable Care Act subsidies from the pandemic years made purchasing health insurance affordable for many Americans, but those tax credits expired at the end of 2025, leaving many individuals and families "confronting difficult choices because of rising Affordable Care Act premiums and other affordability issues," reports Michelle Andrews of KFF Health News. Farm bureau health care plans often offer a more budget-friendly alternative.

Farm bureau health plans tend to offer less comprehensive coverage and require physical exams to qualify; however, they can still provide substantial savings. Andrews explains, "Plan details vary by state, but they typically share many features of marketplace plans, including coverage of a wide range of services, a broad practitioner network, and a way to file complaints."

Fourteen states "allow health coverage through state farm bureaus, grassroots membership organizations that advocate for the agricultural industry and rural interests," Andrews explains. In general, anyone can join their state farm bureau, which typically costs $30 to $50. "With membership comes the option of buying into the health plan."

To help keep premium costs low, farm bureau health care plans screen their applicants through an underwriting process and will often deny coverage to sicker people. ACA plans have to take anyone who applies. Andrews writes, "In 2026, average ACA premium payments were estimated to increase by 114% for subsidized enrollees."

Because farm bureau plans can turn down people or exempt coverage for expensive or pre-existing conditions, their plans "may be 30% to 50% cheaper than unsubsidized marketplace plans," Andrews reports. For a healthier Americans, a farm bureau health plan presents a viable solutions to spiking premium prices.

Despite their stricter rules, farm bureau health plans are becoming more popular. Andrews adds, "Last year, Missouri was one of four states that passed laws permitting farm bureau health plans." Currently, farm bureau health plan coverage is allowed in Arizona, Arkansas, Indiana, Iowa, Kansas, Mississippi, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, Texas, Ohio and Wisconsin.

Opinion: When it comes to sharing thoughts on elections, maybe asking questions is best

When it comes to sharing thoughts or concerns about upcoming elections with people close to us, we often avoid discussing them out of fear of misunderstandings or unwanted tension. Perhaps a tone of curiosity might be a better way to strike up those conversations, writes Donna Kallner of The Daily Yonder. 

"We might even find we’re not quite as divided as we think on some things," Kallner adds. "We are probably in agreement on the fundamental question, Do you want free and fair elections? I get that we are far apart on the specifics of how to ensure those. But maybe we could at least acknowledge that we have this one important Yes in common." To help everyone stay level-headed, Kallner suggests using election-oriented questions to start meaningful conversations. A few of her questions are shared below. 

What personal experiences helped form your opinions about elections? Kallner writes, "Frankly, voters get far more prompting to amplify someone else’s messages than to tell their own stories. So let’s ask each other about them – not who we voted for but what it looked like when we voted and what that means. . ."

What personal connections do you have with people who conduct elections? Since many rural families still live close to each other, friends or neighbors will often know someone who worked at an election or as an election official. What was their role? What did they say about the experience?

How long do you think it should take to declare the winner of an election? Sometimes, final election results take longer than many people would like, so Kallner suggests asking, "What legitimate reasons might there be for certifying election results to take longer? . . . What conditions do you think should apply to compel a recount? "

Have you attended a public test of voting machines? "In Wisconsin, where I live, a public test is conducted before each election. Anyone can attend. Few do," Kallner writes. "But it’s a great time to ask questions like: Is this machine connected to the internet? What happens if it runs out of paper or jams? . . . What checks and balances are in place to ensure that each ballot is counted and secured in case it’s needed for a recount or audit?"

What would you do? "A 2024 survey of local election officials found that more than one-third have experienced threats, harassment, or abuse specifically because of their job," Kallner writes. Asking people to set boundaries by asking questions can help: "What behaviors would you consider threatening if they were directed at a family member working the polls here? What would you do if you witnessed that behavior? What do you think might be done to moderate the potential for that kind of behavior?"