The annual inflation rate in the United States jumped to 3.3% in March 2026, marking the highest level since May 2024 and a sharp increase from 2.4% in both February and January. 

The Bureau of Labour Statistics (BLS) reports that the spike is primarily driven by higher energy costs (12.5%), mostly gasoline (up 18.9%) and fuel oil (44.2%), due to the war with Iran.

On the other hand, prices for used cars and trucks continued to decline (-3.2% vs -3.2%) while inflation steadied for shelter (3% vs 3%) and eased for food (2.7% vs 3.1%). 

On a monthly basis, consumer prices rose 0.9%, the largest increase since June 2022, following a 0.3% gain in February and also in line with forecasts, boosted by a 21.2% jump in gas prices. 

Meanwhile, core inflation, which excludes food and energy, also picked up, though much more moderately, to an annual rate of 2.6%, compared to forecasts of 2.7%. 

On a monthly basis, core consumer prices increased by 0.2%, below expectations of 0.2%.