Inflation in the United States rose sharply in March as higher energy prices driven by the Middle East conflict pushed up costs for consumers, according to government data released Wednesday.
The US Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) increased 3.3% year-on-year in March, up from 2.4% in the previous month.
The surge was largely driven by gasoline prices, which jumped 21.2% between February and March — the biggest monthly increase since records began in 1967.
Excluding volatile food and energy prices, so-called core inflation rose to 2.6%, slightly higher than February’s 2.5%.
The spike in prices comes amid heightened geopolitical tensions following the US–Israel bombing campaign in Iran and subsequent disruptions to global oil supply routes, including restrictions in the Strait of Hormuz.
Despite the United States being a major crude producer, domestic fuel prices have climbed sharply, with the average cost of regular gasoline rising to about $4.15 per gallon, compared with roughly $3 before the conflict.
The inflation pressure adds political and economic strain on President Donald Trump, who has prioritised curbing price growth and is now managing peace negotiations involving Iran alongside preparations for November midterm elections.
The administration maintains that the price shock is temporary, even as analysts warn of further increases in food, transport, and shipping costs in the coming months.
Economists say the March data reflects only the early impact of the energy shock, with more inflationary pressure expected as supply chain disruptions persist.
Federal Reserve Chair Jerome Powell has previously warned that the conflict could delay progress in bringing inflation back toward the central bank’s 2% target.
Inflation has remained above target for five years, following successive shocks including the COVID-19 pandemic, the war in Ukraine, and trade policy disruptions.
