Bureau of Labor Statistics data released April 14, 2026 showed the Producer Price Index (wholesale inflation) rose to 4.0% annually in March — the highest in three years and up from 3.4% in February.
Gasoline prices surged 15.7% in a single month, accounting for nearly half of the monthly increase. Diesel rose 42% and jet fuel 30.7%. The energy surge is directly tied to the Iran war and the Strait of Hormuz disruption.
The actual monthly increase of 0.5% came in well below the expected 1.1%, partly because BLS data collection occurred on March 10 — two weeks after the initial U.S.-Israeli strikes — and may not fully capture the later blockade-driven price surge. Core PPI (excluding food and energy) was tame at 0.1% monthly, indicating the inflation is energy-driven rather than broad-based.
NerdWallet's Elizabeth Renter noted: “The quickening can be attributed to energy inflation, or the oil shock associated with the war in Iran; but wholesale inflation was on a bit of a tear before the conflict began, rising month over month since November.” RSM US analyst Tuan Nguyen warned core PCE inflation could accelerate to 3.5% annually — above the Fed's 2% target.
This follows the March CPI report showing consumer inflation at 3.3% with gasoline up 21.2% — and the Fed Reserve study finding Trump's tariffs caused the “entirety of excess inflation” in consumer goods.