U.S. inflation accelerated last month to its highest level in nearly two years, as sharply higher oil prices stemming from the U.S.‑Israel war in Iran began to ripple through the broader economy.
Consumer prices rose 3.3 percent over the 12 months to March, up from 2.4 percent in February, according to the Department of Labor.
This increase, which was largely anticipated by economists, marked the largest monthly jump since 2022, when the global economy was grappling with an energy shock following Russia’s invasion of Ukraine.
The uptick in March was driven mainly by soaring fuel costs, as the war‑related closure of the Strait of Hormuz pushed oil prices sharply higher.
Gasoline prices climbed 21.2 percent from February to March—the largest monthly rise since the government began tracking the data in 1967. Fuel oil prices surged more than 30 percent, the biggest jump since February 2000.
Read more: U.S. Q4 GDP growth revised lower to 0.5 percent as investment weakens
The effect has been especially pronounced in states such as California, where gasoline prices were already above the national average.
The surge in fuel prices accounted for nearly three‑quarters of the increase in the overall inflation rate from February to March.
Prices for airline tickets and clothing also rose during the month, reflecting a combination of higher energy costs and the ongoing pass‑through of tariff‑related expenses as companies continue to transfer those costs to consumers.
Food prices were unchanged between February and March, but analysts noted they could climb in the coming months as the impact of higher transportation and fertilizer costs starts to feed into grocery bills.
For more news on economy, click here.
