Inflation in the United States accelerated sharply last month, reaching its highest level in almost two years, driven primarily by soaring gas prices linked to geopolitical tensions.
According to data released by the Labor Department, consumer prices rose 3.3% in the 12 months to March, a significant jump from the 2.4% rate recorded in February. This marks one of the largest monthly increases since 2022, when global energy markets were roiled by Russia's invasion of Ukraine.
The latest surge is largely attributed to the impact of the US-Israel war in Iran, which has disrupted oil supplies and sent prices climbing. The report highlighted a dramatic 21.2% increase in gas prices from February to March—the biggest monthly spike since the government began tracking such data in 1967. Fuel oil prices also surged by over 30%, the largest increase since February 2000.
The ripple effects are being felt acutely at the pump, particularly in states like California, where prices were already above the national average. On Thursday, the average cost for a gallon of gas in California hit $5.93, compared to the nationwide average of $4.16, according to the American Automobile Association.
For many Americans, the rising costs are squeezing household budgets. Annel Villegas, a 23-year-old resident, expressed frustration over the financial strain.
"I drive a truck, so I fill it up every half tank, and now it's like, $70, $80," she said, noting that she has tried to limit her driving as much as possible. "I have to do what I have to do to live... I'm just dealing with whatever it brings to me – so, paying more."
While the inflation uptick was anticipated by economists, its scale underscores the ongoing challenges facing consumers as geopolitical events continue to influence global energy markets and domestic price levels.