Inflation Climbs Back to 3.3 Percent as Energy Prices Spike

The Consumer Price Index for All Urban Consumers rose 3.3 percent over the 12 months ending in March 2026, a sharp increase from 2.4 percent in January and February, according to federal data.

Monthly prices climbed 0.9 percent in March, the largest single-month gain in nearly four years. The energy index drove much of the increase, rising 10.9 percent. Gasoline prices spiked 21.2 percent after U.S.-led military action against Iran disrupted global oil supply.

Core inflation, which excludes food and energy, was more contained. It rose 0.2 percent for the month and 2.6 percent over the year.

The Federal Reserve held interest rates steady at 3.5 to 3.75 percent at its March meeting and revised its 2026 inflation forecast upward. Rate cuts that had been anticipated earlier in the year are now less certain.

Kiplinger's forecast indicates that the inflation report for May will show a jump in prices for the third consecutive month, with headline inflation expected to rise above 4.0 percent.

Experian reported the figures as part of its May 2026 personal finance news roundup. The publication noted that the energy-driven inflation surge is putting pressure on household budgets, particularly for lower-income families who spend a higher share of income on transportation and utilities.

Financial advisors say the environment makes it more important than ever to review budgets, build emergency funds, and avoid taking on new high-interest debt.