Inflation goes up by a whopping monthly rate of nearly 1%—and it’s hitting you at the grocery store and gas station

Can’t live without your morning cup (or cups) of coffee? Better taper down that caffeine addiction: It’s costing you a lot more to get your daily cup of joe.

Inflation surged nearly a full 1% in a month, according to the latest consumer price index released today by the Bureau of Labor Statistics. Most of that spike comes from costs associated with the war in Iran, such as gas: Energy prices alone climbed 10.9% for the month. Gasoline led all categories by a wide margin, surging 21.2%, the steepest monthly jump since 1967.

On a yearly basis, inflation hit 3.3% in March, up nearly a full percentage point from 2.4% in February. That’s highest annual rate since April 2024, and the biggest one-month increase since 2022.

Economists were comforted by the fact that the energy spike didn’t roll over more into other categories. Core inflation, which strips out volatile food and energy, rose only 0.2% month over month, with a rise of 2.6% year over year, slightly below expectations. “The trajectory is encouraging here and should not be overlooked,” Jeffrey Roach, chief economist for LPL Financial, wrote in a note.

Still, the energy spike has started to bleed through. Coffee, already an inflation sore spot, jumped again in March: The average retail pri...