Inflation in March saw the largest monthly gain since 2022 as the US-Israel war sent gas prices skyrocketing past $4 a gallon.
Headline inflation clocked in 3.3% higher than a year ago, while rising 0.9% on a monthly basis in a rapid acceleration from February’s levels, according to Labor Department data released Friday. Economists surveyed by Bloomberg had anticipated a 3.4% increase from a year ago and 0.9% from a month prior.
The spike was almost entirely driven by a rise in energy costs as the war left the vital Strait of Hormuz largely closed off. The gasoline index alone soared 21.2%, which the Labor Department said accounted for almost three-quarters of the monthly gain and amounted to the single-largest monthly increase since the government began tracking the series in 1967.
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On a “core” basis, which strips out volatile categories like food and energy, prices rose by 0.2% from February’s levels and 2.6% on an annual basis. Economists had expected increases of 0.3% and 2.7%, respectively.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
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