U.S. CPI Rises 3.3% in March on Gasoline Surge

The U.S. Labor Department reported Friday that consumer prices rose 3.3 percent in March from a year earlier, the largest annual increase since May 2024 and a sharp acceleration from February's 2.4 percent gain. The surge marked the first inflation reading to reflect the impact of the ongoing conflict involving Iran, which disrupted global oil supplies and triggered the biggest monthly jump in gasoline prices in six decades. On a monthly basis, overall prices climbed 0.9 percent from February, the steepest advance in nearly four years.

Gasoline prices drove much of the increase, accounting for about three-quarters of the monthly rise in the Consumer Price Index. The gasoline index jumped 8.4 percent in March, following a 5.7 percent increase the prior month, amid reduced refinery output from seasonal maintenance, tighter global supplies due to geopolitical tensions, and robust travel demand that depleted inventories below five-year averages. National averages reached $4.15 per gallon by Friday, up nearly 40 percent from $2.98 on the eve of the conflict, according to AAA data. These dynamics created immediate pressure on household budgets, particularly for lower- and...