Higher gasoline prices were one of the main drivers behind reaccelerating inflation in March.
Data from the Bureau of Labor Statistics released Wednesday showed headline inflation rose 0.4% over last month and 3.5 % over last year.
In its report, the BLS noted gasoline and shelter combined accounted for over half of the monthly increase in the index for all items in the Consumer Price Index (CPI).
The gasoline index increased 1.7% from the previous month after jumping 3.8% in February. The BLS noted that before seasonal adjustments, gasoline prices rose 6.4% in March.
Gasoline prices tend to rise heading into the spring as the driving season starts. Retail prices at the pump have been on an upward trend, ticking higher along with oil. Recent refinery constraints and falling inventories have also impacted driving fuel prices.
On Wednesday, the national average for gasoline stood at $3.62 per gallon, up $0.23 from one month ago, according to AAA data.
All of the energy index components except fuel oil increased last month, sending the gauge up 1.1% in March after increasing 2.3% in February.
On an annualized basis the energy index increased 2.1%, with all of the components higher except for fuel oil, which dropped 3.7%.
US crude futures climbed above $80 per barrel in mid-March and have stayed above that level ever since.
On Wednesday, West Texas Intermediate (CL=F) traded just above the $85-per-barrel level, while Brent (BZ=F), the international benchmark price, traded below $89 per barrel.
Oil alliance OPEC+ plans to hold output cuts of 2.2 million per day until June. Geopolitical tensions have put upward pressure on prices.
Read the latest news on inflation and what it means for the Federal Reserve:
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Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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