Learn about purchasing power, its effect on currency value, and how inflation influences what one unit of money can buy. Understand its significance for investors.

Here’s something no American wants to hear: Prices are surging again, and uncomfortably high inflation could be with us for quite some time.

Consumer prices in March were up 3.3% from a year ago, the biggest annual increase in nearly two years. Higher gasoline prices tied to the war with Iran accounted for much of the surge.

The Iran war has pushed up gasoline, airline fares and other prices for consumers.

Sharply rising gas prices drove inflation to 3.3% in March, the highest rate in nearly two years.

Inflation picked up pace across the U.S. in March, with prices also climbing in North Texas — though the Dallas-Fort Worth area saw a notable break when it came to housing costs. New data from the U.S.

The inflation data covers the period before the war the U.S. and Israel launched against Iran, so it doesn't reflect the massive surge in energy prices that took effect during the conflict. Oil prices at one point climbed over $100 a barrel while prices at the pump surged by more than $1 a gallon.

The Commerce Department on Friday released the February 2026 PCE inflation report, which showed the Federal Reserve's preferred inflation gauge remained stubbornly high for consumers.