US inflation surges to 3.3% as Iran war impact bites

Inflation in the United States rose sharply in March, government data shows, as higher energy prices due to the war in the Middle East hit Americans hard.

The nationwide sticker shock put pressure on President Donald Trump, who has ordered peace talks with Iran and faces mid-term elections in November.

The rate of inflation rose to 3.3 percent year-on-year in March, according to the US Bureau of Labor Statistics (BLS). By comparison, this same consumer price index (CPI) was 2.4 percent year-on-year a month earlier.

Gasoline prices surged by 21.2 percent between February and March — the largest monthly increase since the government began publishing a related index in 1967, the US Bureau of Labor Statistics (BLS) says.

Markets had anticipated the surge, according to the consensus published by MarketWatch.

Despite being the world’s top producer of crude oil, the United States also felt the pain, as prices at the gas pump shot up.

A gallon (3.78 liters) of regular gasoline currently costs an average of $4.15 in the United States, compared to approximately $3 just before the war.

The Trump administration — elected in part on a promise to quash inflation — maintains that the war’s economic disruptions will be temporary.