The annual inflation rate in the US rose to 3.3% in March 2026, the highest level since May 2024 and a sharp increase from 2.4% recorded in both February and January. The reading matched market expectations, with the acceleration largely driven by higher energy costs (up 12.5%), particularly gasoline (18.9%) and fuel oil (44.2%), amid the ongoing war with Iran.
In contrast, prices for used cars and trucks continued to fall (-3.2%, unchanged from the previous month). Inflation for shelter remained steady at 3%, while food price inflation eased to 2.7% from 3.1%.
On a monthly basis, consumer prices increased by 0.9% in March, the largest one-month rise since June 2022, following a 0.3% gain in February and again in line with forecasts. The surge was largely attributed to a 21.2% jump in gasoline prices.
Meanwhile, core inflation, which excludes food and energy, also picked up but more moderately, rising to an annual rate of 2.6%, slightly below the expected 2.7%. Month-over-month, core consumer prices rose 0.2%, coming in below the forecast of 0.3%.
