US inflation jumps to 3.3% in March as Iran war drives up prices
US consumer prices jumped 3.3% in March compared to last year, hitting a two-year high. The Bureau of Labor Statistics said the increase came as the war with Iran drove up oil and energy costs across the country.
Consumer prices in the US rose 3.3% in March compared to the same month last year, marking the biggest increase since 2024. Monthly prices jumped 0.9% in March alone.
The spike came after the US and Israel launched a joint attack on Iran, sending crude oil prices soaring. Energy costs and goods affected by Middle East supply chain disruptions saw the steepest price increases.
Economists had predicted exactly this 3.3% increase, according to surveys. The inflation surge reflects how quickly global conflicts can impact American wallets through higher gas prices and shipping costs.
The jump dims hopes that the Federal Reserve will cut interest rates anytime soon. Higher inflation typically leads the Fed to keep rates elevated to cool down the economy, affecting everything from mortgage rates to credit card interest.
Higher prices mean your gas, groceries, and other goods cost more. The jump also makes it less likely that the Federal Reserve will cut interest rates this year, which affects mortgage rates and loans.
Watch for the Fed's next interest rate decision and whether oil prices continue rising as the Iran conflict develops.
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