US inflation spike: CPI jumps to 3.3% in March as Iran war lifts energy costs

Consumer inflation in the United States rose sharply to 3.3 per cent in March, government data showed Wednesday, as higher energy prices linked to the war in the Middle East pushed up costs for households, AFP reported.The increase marked a steep rise from 2.4 per cent year-on-year in February, reflecting the impact of surging fuel prices on overall inflation.Gasoline prices climbed 21.2 per cent between February and March — the largest monthly increase since the government began publishing a gasoline price index in 1967, the US Bureau of Labor Statistics (BLS) said.Excluding volatile food and energy components, core inflation also edged higher to 2.6 per cent from 2.5 per cent a month earlier, indicating underlying price pressures.The data was broadly in line with market expectations, according to consensus estimates compiled by MarketWatch.The spike in inflation follows escalating tensions in the Middle East. The United States and Israel began bombing Iran on February 28, after which Tehran retaliated by blocking traffic in the Strait of Hormuz, a critical route that carries about a fifth of the world’s oil and gas supplies.Despite being the world’s top crude oil producer, the United States felt the impact through sharply higher gasoline prices at the pump.The surge in inflation has added pressure on President Donald Trump, who has ordered peace talks with Iran. The administration, elected in part on a promise to bring down inflation, has maintained that the economic disruptions caused by the conflict will be temporary.