The recent gas price shock from the Iran war has pushed inflation further away from the Federal Reserve's 2% target, pushing it to 3.4% in March compared to the previous year, according to economists. This increase is expected to be the largest monthly increase since 2022. The surge in gas prices, which increased by 20% last March, could impact consumer confidence and political sentiment and slow economic growth. Economists predict that inflation will continue for several months, with some expecting a cut in interest rates if core inflation doesn't cool noticeably. The increase in inflation is also likely to increase grocery prices. However, the impact on the economy is largely due to energy-intensive industries such as airlines, furniture, restaurant meals and public transportation.