Mucahithan Avcioglu
10 April 2026•Update: 10 April 2026
US consumer inflation accelerated in March to its highest level since May 2024 as a steep rise in energy prices, led by gasoline, pushed up the overall cost of living, according to data released Friday by the Bureau of Labor Statistics.
The consumer price index (CPI) increased 0.9% on a monthly basis in March, its highest increase since June 2022, after rising 0.3% in February, while annual inflation climbed to 3.3% from 2.4% the previous month.
The rise in annual and monthly inflation came slightly below market expectations, which had pointed to an annual rate of 3.4% and a monthly rate of 1% for March.
Energy prices rose 10.9% in March, the largest monthly increase in the category in over 20 years, since September 2005. Gasoline prices jumped 21.2% over the month, the biggest monthly gain since the series was first published in 1967 – nearly six decades – and accounted for nearly three-quarters of the overall monthly increase in consumer prices.
On an annual basis, the energy index leaped 12.5% in March, while gasoline prices were up 18.9% from a year earlier.
Shelter costs also continued to rise, increasing 0.3% over the month, while food prices were unchanged. Food away from home rose 0.2%, but food at home fell 0.2%.
Core inflation, which excludes food and energy, rose 0.2% in March, the same as in February. Over the 12 months through March, core CPI increased 2.6%, compared with a 2.5% annual rise in February.
Among other categories, airline fares rose 2.7% in March, apparel increased 1%, household furnishings and operations gained 0.2%, education rose 0.3%, and new vehicles edged up 0.1%.
By contrast, medical care prices fell 0.2% over the month, while personal care declined 0.5% and used cars and trucks dropped 0.4%.
Over the past 12 months, food prices increased 2.7%, with food at home rising 1.9% and food away from home advancing 3.8%.
The surge in inflation came amid the backdrop of a severe energy shock after the Iran war disrupted flows through the Strait of Hormuz, a key artery for global crude and LNG trade.
Brent crude initially climbed toward $120 a barrel after the waterway’s closure before stabilizing around $100, while continued restrictions on shipping have kept supply concerns elevated even with a ceasefire.
