U.S. Inflation Rises to 3.3% in March on Energy Prices

U.S. inflation accelerated sharply in March, climbing to 3.3 percent year over year, the highest level in nearly two years, as energy prices surged due to disruptions from the ongoing war in Iran. The Labor Department's Consumer Price Index report, released on Friday, showed a 0.9 percent monthly increase, more than triple the pace from February, with gasoline prices jumping 21 percent and fuel oil rising over 30 percent. The conflict, which began in late February between the United States, Israel, and Iran, has restricted shipping through the Strait of Hormuz, throttling global oil supplies and pushing the national average price for a gallon of regular gasoline to $4.15, a nearly 30 percent increase from a year earlier.

The spike in energy costs accounted for nearly three-quarters of the monthly inflation gain, according to the Bureau of Labor Statistics. While core inflation, which excludes volatile food and energy prices, rose more modestly to 2.6 percent year over year and 0.2 percent from February, broader pressures are emerging. Transportation, utilities, and supply chain costs tied to fuel are beginning to filter into other categories, including groceries and services....