Despite rising inflation, Trump administration says that economic impact of war is likely to be temporary.
Inflation in the United States increased sharply in March, according to official data, as rising energy prices linked to the Middle East conflict put pressure on consumers.
Figures released by the US Bureau of Labor Statistics showed that the inflation rate reached 3.3 percent year-on-year in March, compared to 2.4 percent in the previous month.
The increase was mainly driven by a sharp rise in fuel prices. Gasoline prices jumped by 21.2 percent between February and March, marking the biggest monthly increase since records began in 1967.
The rise in prices comes after the United States and Israel launched attacks on Iran on February 28, followed by Iran’s response of blocking traffic in the Strait of Hormuz, a key route for global oil and gas supplies.
Even though the United States is the world’s largest oil producer, it has still been affected by the surge in fuel costs. The average price of regular gasoline has climbed to about $4.15 per gallon, compared to around $3 before the conflict.
The situation has increased pressure on President Donald Trump, who has pushed for peace talks with Iran and is also facing upcoming mid-term elections in November.
Despite the rising inflation, the Trump administration says that the economic impact of the war is likely to be temporary.
