U.S. inflation has soared due to the Trump administration's ongoing war with Iran.
The March Consumer Price Index showed a 0.9 percentage-point increase from February, meaning prices are 3.3 percent higher year-over-year. It’s the largest annual increase since May 2024.
The significant uptick in inflation is a result of the Middle East conflict, which began when the U.S. and Israel launched joint strikes on Iran February 28.
The Iran war has spiked global energy prices, with oil regularly surpassing the $100-a-barrel milestone in the past month. The average gas price in the U.S. has risen above $4 a gallon, up nearly $1 from one year ago.
Soon after the report dropped Friday morning, White House spokesperson Kush Desai posted on X that President Donald Trump “has always been clear about short-term disruptions” caused by the Iran war and that he is “diligently working to mitigate” them.
“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump’s policies,” he wrote.
Also Friday morning, President Donald Trump wrote on Truth Social: “WORLD’S MOST POWERFUL RESET!!!” But it was unclear to what he was referring.
The fuel price surges are largely attributed to Iran’s de facto blockade in the Strait of Hormuz, a vital trade artery through which 20 percent of the world’s oil flows. Earlier this week, the U.S. and Iran agreed to a two-week ceasefire but ship traffic in the strait has scarcely changed.
Inflation rises across numerous sectors
The Bureau of Labor Statistics’ March report confirmed that inflation is being driven by surging energy costs. Overall, energy prices have climbed 10.9 percent — while gasoline is an extraordinary 21.2 percent higher.
On Friday, the average price for a gallon of gas in the U.S. was $4.15, according to AAA. Drivers are paying $5.91 on average in California and $4.09 in Florida.
Core prices, excluding food and energy categories, were up 0.2 percent month-over-month, and 2.6 percent from a year earlier. There were increases in price across airline fares, apparel and new vehicles, according to the report.
Airfares rose by 2.7 percent after a dramatic surge in the cost of jet fuel, while electricity costs ticked up by 0.8 percent. Transportation services crept up by 0.6 percent.
Experts had previously warned that surging fuel prices would eventually ripple through the broader economy, pushing up the cost of everyday goods for Americans.
Some sectors saw modest improvements, though. Grocery prices dipped slightly in March, falling 0.2 percent, though they remained 1.9 percent higher than a year ago.
The cost of utility gas service decreased by 0.9 percent, but it is still up by 6.4 percent year-over-year. The price of medical care commodities fell by 1 percent.
White House reaction
Some corners of the administration appeared keen to focus on other things Friday morning. The White House "Rapid Response" account on X posted a news clip of Brandon Arnold, vice president of the National Taxpayers Union, discussing “a lot of good news in the tax refund space.”
Last month, Trump downplayed rising energy prices as insignificant in the broader context of global security.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” he wrote on Truth Social March 8. “ONLY FOOLS WOULD THINK DIFFERENTLY!”
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The administration has been ramping up its messaging on affordability ahead of November’s midterm elections. In December, Trump traveled to the battleground state of Pennsylvania to trumpet his economic agenda, where he was flanked by large banners reading “Lower Prices” and “Bigger Paychecks.”
“I have no higher priority than making America affordable again, that’s what we’re going to do,” Trump told a crowd of supporters. “They caused the high prices, and we’re bringing them down. It’s a simple message.”
Currently, the president’s approval rating remains below water, according to the latest YouGov/Economist survey, which was conducted in the first week of April.
A majority of respondents, 55 percent, said they disapproved of Trump, while 38 percent said they approved. When it came to his handling of the economy, 56 percent signaled dissatisfaction, while 37 percent said they were satisfied.
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