Inflation rose to 3.3% in March, the first time it has been reported to reflect the impact of the Iran conflict. Energy prices saw the largest increase of 10.9%, the largest monthly jump since 2005. Food prices remained stable despite disruptions in the Strait of Hormuz. The rise in energy costs is a key driver of inflation, affecting the price of goods and services across the economy. The White House expects inflationary pressures tied to Operation Epic Fury and is working to ensure the free flow of energy through the Strait.