Inflation in the United States accelerated in March, rising to an annual rate of 3.3 percent, driven largely by a sharp increase in fuel prices following escalating conflict in the Middle East, according to official data released Friday.
The latest figures mark a notable jump from the 2.4 percent year-on-year increase recorded in February, underscoring the growing impact of geopolitical tensions on the global economy.
Data from the U.S. Bureau of Labor Statistics showed that fuel prices surged by 21.2 percent between February and March, the largest monthly increase since the index was first introduced in 1967, reports Al-Rai daily.
Core inflation, which excludes volatile food and energy prices, also edged higher, rising to 2.6 percent compared to 2.5 percent the previous month, signaling broader underlying price pressures.
The surge in inflation follows the outbreak of war on February 28, when Israel and the United States launched strikes against Iran, prompting retaliatory attacks from Tehran. The situation escalated further with the closure of the Strait of Hormuz, a critical chokepoint through which roughly 20 percent of global oil and gas supplies transit.
Despite being the world’s largest oil producer, the United States has not been shielded from the impact of rising energy costs. Gasoline prices have climbed rapidly, with the national average reaching $4.15 per gallon, up from around $3 prior to the conflict.
The administration of President Donald Trump has maintained that the economic disruption will be temporary, reiterating its commitment to improving consumer purchasing power.
However, at its mid-March meeting, the Federal Reserve signaled caution. Chairman Jerome Powell warned that the ongoing conflict could delay progress in bringing inflation back under control, complicating the central bank’s policy trajectory in the months ahead.
