U.S. inflation increased in February and continued to rise in March, reaching levels not seen in nearly two years. The surge is largely attributed to the war with Iran and its impact on energy costs.
Consumer prices in March were up 3.3% from a year ago, with estimates suggesting a potential rise to 3.4%. This marks the largest annual increase since May 2024 and the highest monthly gain overall since the post-pandemic inflation crisis in 2022.
Gasoline prices experienced a significant jump, increasing 21.2% between February and March – the largest monthly increase since records began in 1967. This spike in energy costs is expected to discourage the Federal Reserve from cutting interest rates in the near future.
The latest cost-of-living report confirms a trend of rising prices for American consumers, driven primarily by the escalating costs at the pump due to the ongoing conflict.