US Inflation Reaches New High
Inflation in the United States accelerated last month, reaching its highest rate in nearly two years. This increase was largely influenced by rising oil prices, which were triggered by the conflict involving the US and Israel in Iran. These higher energy costs began to impact the broader economy.
The Labor Department reported that consumer prices rose by 3.3% over the 12 months leading up to March, an increase from 2.4% in February.
This change represents one of the most significant monthly shifts since 2022, a period marked by an energy shock resulting from Russia’s invasion of Ukraine.
The report highlighted that the recent inflation surge was primarily driven by a sharp increase in gasoline prices. This was a consequence of the war-induced shutdown of the Strait of Hormuz, which caused oil prices to soar.
"Consumer prices climbed 3.3% over the 12 months to March, picking up from 2.4% in February," the Labor Department said.
"That marked one of the biggest monthly changes since 2022, when the world was dealing with an energy shock brought on by Russia’s invasion of Ukraine."
"Last month's increase was driven by a surge in prices at the pump, as the war’s shutdown of the Strait of Hormuz sent oil prices soaring," according to the report.
