US CPI surges on energy spike amid Middle East conflict

10th Apr 2026 13:30

(Sharecast News) - US inflation surged in March as the conflict involving the US, Israel and Iran pushed prices sharply higher, according to the Bureau of Labor Statistics, with the consumer price index rising 0.9% month-on-month and 3.3% year-on-year.

March's increase marked the strongest monthly increase in almost two years and offered the first clear indication of how the closure of the Strait of Hormuz has fed through to US consumer prices. Economists were expecting to see CPI rise 1.0% month-on-month.

Energy costs shot up 10.9% in March, driven by a 21.2% jump in gasoline prices, which made up the bulk of the overall monthly increase. Airfares were up 2.7% on the month and 14.9% year‑on‑year.

Core CPI, which strips out volatile food and energy costs, rose a more modest 0.2% in March and was 2.6% higher than at the same time a year earlier.

Annual inflation has not exceeded 3% since the summer of 2024, when price pressures were easing after peaking at 9.1% in June 2022.

Reporting by Iain Gilbert at Sharecast.com