Inflation ticked up to 3.3% in March, according to data released Friday by the Bureau of Labor Statistics.
The March Consumer Price Index report is the first to reflect the impact of the conflict with Iran. While the 3.3% reading was in line with expectations, inflation had been at 2.4% and on a downward trend prior to the U.S. strikes.
Energy prices saw the largest increase, rising 10.9%, the biggest monthly jump since 2005. Gas prices are now above $4 a gallon, while diesel is just over $5. Food prices, however, remained stable despite disruptions in the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply flows. Rising energy costs are a key driver of inflation, as they affect the price of goods and services across the economy.
White House spokesperson Kush Desai said the administration expected inflationary pressures tied to Operation Epic Fury.
“President Trump has always been clear about short-term disruptions as a result of Operation Epic Fury, disruptions that the Administration has been diligently working to mitigate,” he said. “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.”
Desai added that the administration is working to ensure the free flow of energy through the Strait of Hormuz and that the economy can handle the disruption due to its “supply-side agenda of tax cuts, deregulation, and energy abundance.”
Former Transportation Secretary Pete Buttigieg, who served under the Biden administration, told CNBC that the Trump administration’s policies are contributing to rising prices.
“As feared, inflation is up,” he said, adding that the administration is actively making prices higher through tariffs and the war.
Inflation peaked at 9.1% under the Biden administration. March’s reading is the highest level of inflation under the Trump administration.
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