CPI in March 2026 rises 0.9% as energy disruptions from Iran war contribute to inflation

Inflation accelerated in March as consumer prices rose amid economic disruptions tied to the Iran war’s impact on energy markets. The U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) increased 0.9% from the prior month and was 3.3% higher than a year earlier.

The monthly gain of 0.9% followed a 0.3% increase in February, while the annual rate rose from 2.4% last month to 3.3% in March.

Expectations vs. the data

Both the 0.9% monthly increase and the 3.3% year-over-year rise matched economists’ expectations, according to forecasts from economists polled by LSEG.

Core CPI, which excludes volatile categories such as gasoline and food to better reflect underlying price trends, rose 0.2% on a monthly basis and increased 2.6% from a year ago. Those figures were slightly below economists’ expectations of 0.3% and 2.7%, respectively.

Core CPI was also modestly hotter than February, when core prices rose 0.2% month over month and 2.5% year over year.

Data effects from the government shutdown

Economists noted that inflation data from December 2025 through April 2026 may be affected by disruptions to data collection caused by last fall’s 43-day government shutdown.

During the shutdown, the BLS was unable to gather data and used a carry-forward methodology to account for the missing October CPI report and gaps in November’s report. Economists said this approach is likely to create a downward bias in inflation readings until new data in spring helps correct the discrepancy.

Cost-of-living breakdown

Food and housing costs remain central to household pressure. In March, food prices were flat on a monthly basis but increased 2.7% from a year ago.

• The food at home index declined 0.2% in March and rose 1.9% over the past year.
• The food away from home index was up 0.2% for the month and 3.8% higher than a year ago.

Within food categories, meats, poultry and fish prices fell 0.5% in March but were still 5.6% higher than a year ago. Beef and veal prices decreased 0.6% in March and were up 12.1% versus last year.

• Egg prices continued to decline after an avian flu outbreak affected supply, dropping 3.4% in March and falling 44.7% from a year ago.
• The fruits and vegetables index rose 1% in March and increased 4% on an annual basis.

Energy prices drive the monthly jump

Energy prices surged 10.9% in March, reflecting disruptions to Middle Eastern oil supplies linked to the Iran war. Energy prices were up 12.5% over the last year.

• Gasoline prices jumped 21.2% in March and were up 18.9% from a year ago.
• Utility gas service prices declined 0.9% for the month but rose 6.4% year over year.
• Electricity costs increased 0.8% in March and were up 4.6% compared with last year.