Iran war oil shock pushes US inflation to highest level in almost two years

By Alicia Wallace, CNN

(CNN) — A war-driven jump in gas prices helped push US inflation to 3.3% in March, marking the fastest annual pace in nearly two years, new Bureau of Labor Statistics data showed Friday.

On a monthly basis, prices rose 0.9%, triple the 0.3% pace seen in February, when inflation was 2.4%, the latest Consumer Price Index data showed.

Gasoline prices, which rose a record 21.2% during the month, accounted for nearly three-quarters of the overall monthly increase.

Economists had expected prices to jump 0.9% from the month before and for the annual rate to climb to 3.4%, according to FactSet.

Ripple effects from the Iran war, which began in late February, have swiftly set back progress on inflation while amplifying longstanding affordability concerns.

Excluding gas and food, categories that tend to be volatile, core CPI rose 0.2% in March, matching the pace from the month prior. On an annual basis, that closely watched index of underlying inflation rose 2.6% from 2.5% in February.

This story is developing and will be updated.

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