Logo

Jooish News

Vos Iz Neias

Inflation Was Elevated Last Month Even Before the Iran War Sent Energy Costs Soaring

Mar 11, 2026·2 min read

KANSAS CITY (AP) — Inflation stayed stubbornly elevated last month as gas prices rose in a snapshot of what consumer prices looked like before the Iran war sent energy costs soaring.

Consumer prices rose 2.4% in February compared with a year earlier, the Labor Department said Wednesday, matching January’s 2.4% increase. Excluding the volatile food and energy categories, core prices climbed 2.5% from a year ago, also matching January’s level, which was the lowest in five years. Both figures are above the Federal Reserve’s 2% target.

Wednesday’s data has been overtaken by the conflict that began when the U.S. and Israel attacked Iran on Feb. 28, which has caused wild gyrations in oil prices as shipping lanes through the Persian Gulf have suffered a rare shutdown. Gas prices have already jumped and are expected to push inflation much higher when inflation data for this month is released in early April.

The price spike will challenge officials at the Federal Reserve and could slow consumer spending, which drives two thirds of the nation’s economic growth each year. The increase could be a one-time event and potentially reverse if the war ends soon, as President Donald Trump has hinted. But the spike in gas prices threatens to worsen inflation for at least a few months with Americans already worn down by nearly five years of stubbornly high prices. “Affordability” is already a thorny political issue for congressional Republicans who will face voters in midterm elections later this year.