Rising fuel costs are driving a sharp increase in US inflation.
US inflation has climbed to its highest level in nearly two years, as energy prices surge amid geopolitical tensions. Data from the U.S. Department of Labor shows consumer prices rose 3.3% in the 12 months to March, up from 2.4% in February.
The rise in US inflation in 2026 was largely driven by fuel costs. Gas prices jumped 21.2% between February and March, the biggest monthly increase since 1967.
Fuel oil prices also surged by more than 30%. Analysts link the spike to disruptions in oil supply through the Strait of Hormuz, following tensions involving United States, Israel, and Iran.
The impact is being felt across the country. In California, gas prices are nearing $6 per gallon, far above the national average. Higher energy costs are also pushing up prices for airline tickets and clothing.
Economists warn that US inflation in 2026 may rise further as transport and production costs increase. Food prices, which remained stable in March, could soon reflect these pressures.
The surge has also complicated expectations for interest rate cuts by the Federal Reserve, as policymakers remain cautious about persistent inflation.
Similar trends were seen during the Russia’s invasion of Ukraine, when global energy markets were disrupted.
While oil prices have eased slightly, uncertainty remains.
For now, US inflation continues to put pressure on households and delay hopes of economic relief.