Consumer prices jumped 0.9% in March as Iran war sent gas prices soaring

Surging gas prices pushed inflation to its highest level in two years last month as the war with Iran sent gas prices spiraling.

Surging gas prices pushed inflation to its highest level in two years last month as the war with Iran sent gas prices spiraling.

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The annual rate of inflation hit 3.3%, led by a 21.2% increase for gasoline — the largest one-month increase at the pump since 1967. Between February and March, overall inflation climbed 0.9%.

Gasoline prices surged to their highest levels since the Covid-19 pandemic last month, while diesel and jet-fuel prices set records. Despite a two-week ceasefire announced Tuesday, those prices have yet to meaningfully decline. On Friday, AAA reported gas prices averaged $4.15 a gallon, $0.02 less than the $4.17 seen a day earlier.