Prices in the United States skyrocketed by a staggering 0.9% in March, or by 3.3% when compared to a year earlier, according to a new report from the Bureau of Labor Statistics (BLS) published on Friday that took into account the market effects of the U.S. war against Iran, the “largest annual increase since May 2024,” The Wall Street Journal reported.
The data comes from the BLS’ monthly Consumer Price Index report, which measures the average change over time in prices for common household goods like groceries, health care and transportation. Leading the cost increase was a 21.2% increase in gasoline costs, which “accounted for nearly three quarters of the monthly all items increase,” the BLS’ report reads.
Typically, monthly increases in costs range between 0.2% and 0.3%, making the nearly 1% increase abnormal. The price increases are largely seen as a direct result of the Trump administration’s war against Iran, which resulted in a major disruption of trade flow through the Strait of Hormuz, which sent oil prices soaring, and in turn, the cost of consumer goods as well.
While the Trump administration reached a tentative ceasefire agreement with Iran earlier this week, the terms of the agreement appear to have been violated several times over the past few days, notably with Israel’s strikes on Lebanon made within hours of the agreement being reached, strikes that were the “heaviest and deadliest attack on the country” since the conflict began in late February, per Democracy Now.