Inflation Surged in March, Fueled by U.S., Israel, Iran Conflict

On Friday, the White House received its worst inflation report of President Donald Trump’s second term, as the U.S./Israel war in Iran sent consumer prices surging at the fastest monthly pace in four years — handing the administration a significant political problem at a moment when it has staked much of its economic credibility on bringing costs down.

Consumer prices rose 0.9 percent in March from the month before, the Bureau of Labor Statistics reported, the biggest monthly gain since 2022. On an annual basis, prices climbed 3.3 percent, up sharply from 2.4 percent in February. Energy prices drove much of the increase, jumping roughly 11 percent — the largest monthly gain in more than two decades — with gasoline prices posting the biggest single-month spike in the history of the index.

The White House moved quickly to minimize the report. White House economic adviser Kevin Hassett said the price increases will be temporary because they were confined to energy and didn’t spill over into other goods. He noted declines in other categories such as eggs, beef and sports tickets.

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