Inflation Surges as Energy Prices Spike

US inflation accelerated sharply in March, driven largely by rising energy costs linked to ongoing geopolitical tensions, according to data reported by Yahoo Finance.

Rising gasoline prices drive inflation higher in March.

The Consumer Price Index rose 3.3% year over year and 0.9% from February, marking the largest monthly increase since 2022. Gasoline prices surged, with the energy spike tied in part to disruptions around the Strait of Hormuz.

The gasoline index alone jumped 21.2%, accounting for nearly three-quarters of the monthly increase, the Labor Department said.

Higher fuel costs are expected to ripple across the economy, raising transportation and goods prices.

Economist Claudia Sahm described the current environment as a “whiplash economy,” warning that the full effects of the recent conflict may not yet be reflected in the data.