Weather 
A global energy shock triggered by the Iran war sent U.S. inflation soaring in March, with the Consumer Price Index rising at a 3.3% annual rate, the highest reading in nearly two years.
By the numbers
Economists had predicted inflation would jump nearly an entire percentage point from 2.4% in February to 3.3% in March on an annual basis, according to the average of six separate forecasts reviewed by CBS News. The last time inflation was this high was in May 2024.
The CPI, a basket of goods and services typically bought by consumers, tracks changes in prices over time.
Inflation ran hot in March due to higher energy costs tied to the Iran war, which has constrained the flow of crude through the Strait of Hormuz, a critical chokepoint for global oil supply. The CPI data shows energy prices, driven by a spike in gasoline costs, rose 10.9% from the month prior.
Brent crude, which was trading at $73 a barrel before the war started on Feb. 28, traded at $95.88 as of Friday morning.
Consumers got hit with higher prices at the pump last month, with gasoline prices rising 21.2% from February, according to the Bureau of Labor Statistics data. The agency said the jump represents the largest monthly increase since it began tracking the data in 1967.
U.S. gasoline prices have soared nearly 40% since the conflict erupted, reaching $4.15 a gallon on Friday, according to AAA.
A two-week ceasefire between the U.S. and Iran announced on Tuesday could ease gas prices if it holds, but energy experts said it will likely take weeks to recede below $4 a gallon.
The CPI reading follows the release of another key inflation gauge known as the Personal Consumption Expenditures (PCE) price index on Thursday, which showed costs were elevated even before the war erupted. PCE rose 2.8% on an annual basis in February, the same as January, but stubbornly above the Federal Reserve’s 2% annual target.
