Gasoline prices surge 21.2% in a month as Iran blocks Strait of Hormuz, pushing inflation to 3.3%

Inflation surged to 3.3% in March over the past 12 months, the highest level since May 2024, up sharply from 2.4% the previous month. The jump marks a direct hit to household budgets, as rising energy costs ripple through transportation, shipping, and consumer goods. The core Consumer Price Index, which excludes volatile food and energy, also ticked up to 2.6% from 2.5%, signaling broader price pressures are persisting. The main driver: gasoline prices soared 21.2% in a single month — the largest monthly increase in two years. That spike was not random. It followed Iran’s blockade of the Strait of Hormuz, a chokepoint for 20% of the world’s oil supply. The disruption has triggered the worst energy supply shock on record, constricting global oil flows. With energy-intensive sectors now passing on higher costs, inflation is accelerating just as the Federal Reserve weighs when to cut interest rates. That decision is now in doubt — the hotter CPI report undermines the case for near-term rate relief.