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Inflation surged to its highest level in two years during the month of March, according to U.S. Bureau of Labor Statistics data obtained by ABC News.
Prices increased by 3.3% in March compared to one year prior, marking a 2.4% year-over-year inflation rate in the prior month. The increase in prices was triggered by the U.S.-Israeli war with Iran, as oil prices have sharply increased after Iran blockaded the Strait Of Hormuz, which serves as a vital waterway for trade along the Persian Gulf responsible for an estimated 20% of the world's oil supply traveling through, in retaliation of the war.
Gasoline prices were reported to be 25% higher in March than February and jumped nearly 12% from a month earlier, according to the BLS report. The current national average for regular gas is $4.152 per gallon, which is lower than the $4.166 average from the previous day, but higher than the $3.539 average one month ago and $3.22 average one year ago.
Airline fares were also reported to have increased 3.4% in March from February, according to the BLS data. The spike of prices could create an issue for interest rate policy at the Federal Reserve, which may be hesitant to lower borrowing costs as inflation rates continue to rise.