• The United States inflation rose sharply to 3.3% in March, up from 2.4% in February
• The spike was largely driven by energy costs, especially gasoline linked to the US-Israel strikes on Iran and disruptions in the Strait of Hormuz
• Economists warned that the inflation could worsen, with food, travel, and shipping costs expected to rise further

Inflation in the United States accelerated sharply in March, driven largely by soaring energy costs linked to the ongoing conflict involving Iran, according to fresh government data released Wednesday, April 8.

The latest figures show consumer prices rose 3.3 percent year-on-year, a notable jump from February’s 2.4 percent, based on data from the US Bureau of Labor Statistics.

The spike highlights how geopolitical tensions are once again rippling through the global economy.

Energy costs were the main driver of the surge, with gasoline prices increasing by 21.2 percent between February and March, the steepest monthly rise since records began in 1967.

As a result, Americans are now paying an average of $4.15 per gallon, up from about $3 before the conflict escalated.

The inflation measure excluding volatile food and energy prices, often referred to as core inflation, also edged higher to 2.6 percent, compared to 2.5 percent in the previous month.

The price surge follows escalating hostilities after the United States and Israel launched strikes on Iran in late February.

In response, Tehran disrupted shipping through the Strait of Hormuz, a critical route for roughly one-fifth of global oil and gas supplies.

Despite being the world’s largest oil producer, the United States has not been shielded from the fallout, as supply disruptions pushed fuel costs higher nationwide.

The inflation spike comes at a politically sensitive moment for President Donald Trump, whose administration has prioritised curbing rising prices ahead of midterm elections scheduled for November.

Officials have maintained that the economic impact of the conflict will be temporary. Vice President JD Vance expressed cautious optimism ahead of diplomatic talks with Iran in Pakistan, saying he hopes for a “positive” outcome.

However, economists warn that the situation could worsen in the coming months, particularly for lower- and middle-income households already grappling with higher living costs.

Heather Long, chief economist at Navy Federal Credit Union, noted that inflation has now reached its highest level in nearly two years.

“This is only the beginning. Food prices, travel and shipping costs are all going up in April and will exacerbate the pain,” she said.

Christopher Low of FHN Financial echoed similar concerns:

“March CPI was as expected, so no surprises. But there is a huge increase in fuel prices, boosting inflation.”

He added that geopolitical instability remains a key risk factor:

“And we got the news last night that the ceasefire is not being honored by either side, apparently,” he said. “There’s still very little traffic through the Strait of Hormuz.”

When Trump returned to office in January 2025, inflation had been on a downward trend following its peak in 2022, when global disruptions, including the Russia-Ukraine War, pushed fuel prices to record highs.

At that time, annual inflation stood at 2.3 percent.

However, subsequent tariff hikes on imported goods contributed to renewed upward pressure on prices, though officials have downplayed the connection.

While inflation eased toward the end of last year due to relatively stable gasoline prices, the latest developments in the Middle East have once again complicated the outlook.

During the Federal Reserve’s March meeting, Chair Jerome Powell warned that the conflict could delay progress in bringing inflation back to the bank’s 2 percent target, a goal it has struggled to achieve amid repeated global economic shocks, including the COVID-19 pandemic, geopolitical conflicts, and trade tensions.

Nigeria’s inflation rate halved since 2023, says Information Minister

Meanwhile, TheRadar earlier reported that Nigeria’s Minister of Information and National Orientation, Mohammed Idris, had announced that the country’s inflation rate has reduced by nearly half since 2023, pointing to what he described as encouraging signs that recent economic reforms are beginning to yield tangible results.

According to Idris, Nigeria’s inflation rate has fallen significantly to 15.06 per cent in February 2026, compared with 21.91 per cent recorded in the same period in 2023, citing figures from the National Bureau of Statistics.

He noted that the decline reflects broader improvements across several areas of the Nigerian economy.