American consumers faced a significant jump in the cost of living last month as energy prices surged at a historic rate. According to data released today by the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.9 percent in March on a seasonally adjusted basis. This follows a more modest 0.3 percent increase in February.
Over the past 12 months, the broad measure of inflation has climbed 3.3 percent. This marks a notable acceleration from the 2.4 percent annual rate reported for the period ending in February.
The primary driver behind the March increase was a massive spike in energy costs, which rose 10.9 percent over the month. Gasoline prices alone soared 21.2 percent, representing the largest monthly increase since the Bureau began publishing the series in 1967.
This surge in fuel costs accounted for nearly three-quarters of the total monthly increase in the all-items index. Fuel oil also saw a dramatic jump, rising 30.7 percent, its biggest one-month gain since early 2000.
While energy dominated the report, other sectors showed mixed results. The cost of shelter continued its upward trend, rising 0.3 percent in March. Airline fares rose by 2.7 percent, and apparel prices by 1.0 percent.
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In contrast, the food index remained unchanged for the month. While the cost of dining out rose 0.2 percent, those savings were offset by a 0.2 percent decline in the “food at home” grocery index.
Grocery shoppers saw relief in the prices of eggs, which fell 3.4 percent, and meats, poultry, and fish, which dropped 0.6 percent. However, fresh produce became more expensive, with the fruits and vegetables index climbing 1.0 percent.
“Core” inflation, which excludes the volatile food and energy sectors, rose 0.2 percent in March. This core index has increased 2.6 percent over the last 12 months.
Several categories saw price decreases during the month, including medical care, personal care, and used cars and trucks. Specifically, prescription drug prices fell 1.5 percent, providing a slight reprieve amidst the broader inflationary pressure.
The Bureau noted that data for October and November 2025 remains unavailable due to a previous lapse in government appropriations. Looking ahead, the BLS plans to rebase several CPI series to December 2024 with the release of the April data, scheduled for May 12, 2026.
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