WASHINGTON, April 11 (Xinhua) -- U.S. consumer prices rose sharply in March as a conflict involving the United States, Israel and Iran drove up energy costs, according to data released Friday by the Labor Department's Bureau of Labor Statistics.
The consumer price index increased 0.9 percent on a seasonally adjusted basis from the previous month, pushing annual inflation to 3.3 percent, well above the Federal Reserve's 2 percent target. The monthly gain was fueled by a 10.9 percent jump in energy prices.
Gasoline prices posted a steep increase, rising more than 21 percent in March from a month earlier.
The report comes as consumers weigh whether the conflict will lead to further price increases. Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, said inflation could continue to climb in the coming months.
Some economists, however, said energy prices may have peaked for now, even if they remain elevated. Dean Baker, co-founder of the Center for Economic and Policy Research, said: "We won't see the same spike in energy prices in future months, but they are not likely to return to their pre-war level any time soon."
Concerns are also growing over whether higher energy costs could trigger a recession. Many economists expect slower growth rather than a downturn.
Hufbauer said there will be "no recession, but slow growth." Baker echoed that view, noting that growth was already weak before the conflict. "We could be looking at very weak growth through the rest of 2026," he said.
Excluding energy, services prices rose 0.2 percent in March and were up 3 percent from a year earlier. Shelter costs increased 0.3 percent on the month and 3 percent year over year. ■