Gasoline Prices Post Biggest Monthly Spike Since 1967 as Inflation Climbs to 3.3 Percent
The Consumer Price Index rose 3.3% over the 12 months ending in March 2026, up sharply from 2.4% in January and February. A 21.2% spike in gasoline prices, tied to U.S. military action against Iran, drove most of the increase.
Inflation is back above 3%, and energy prices are the main reason.
The Consumer Price Index for All Urban Consumers rose 3.3% over the 12 months ending in March 2026, according to the U.S. Bureau of Labor Statistics. That is a sharp jump from 2.4% in both January and February. On a monthly basis, prices climbed 0.9% in March, the largest single-month gain in nearly four years.
The primary driver was energy. The energy index surged 10.9% in March, pushed almost entirely by a 21.2% spike in gasoline prices. That was the largest monthly increase in gasoline prices since the Bureau of Labor Statistics began tracking the series in 1967. The spike was tied to U.S.-led military action against Iran that began in late February, which disrupted global oil supply through the Strait of Hormuz.
Core inflation, which strips out food and energy, was more contained. It rose 0.2% for the month and 2.6% over the year.
The Federal Reserve was already holding rates steady before the March report. At its March meeting, policymakers voted to keep the federal funds rate at 3.5% to 3.75% and quietly revised their 2026 inflation forecast upward. Rate cuts this year are looking less certain.
For everyday Americans, the report is a reminder that inflation is not fully tamed. Higher fuel costs feed into shipping and transportation, pushing up prices on a wide range of goods. Anyone carrying variable-rate debt or waiting for mortgage rates to fall will need to adjust their expectations.
The next inflation report is scheduled for May 12.
