Inflation was cooling. The Iran war could send it racing higher again.

Economic forecasts indicate that the upcoming March Consumer Price Index (CPI) report could reveal the fastest pace of price increases in nearly two years. This potential surge in inflation is largely attributed to the ongoing war in Iran, which is expected to disrupt global markets and supply chains. Such a development would reverse recent trends of cooling inflation, posing new economic challenges for American households and businesses. If prices accelerate significantly, the Trump administration may face increased pressure to address rising costs. This could impact consumer spending and broader economic stability.