Inflation Up 3.3% in March Amid Highest Inflationary Period Since 2022
Even before the war with Iran, U.S. construction industry prices rose 12.6 percent in January and February
By Brian Pascus April 10, 2026 10:40 am
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Inflationary warning signs are officially flashing.
On the heels of war with Iran, the Consumer Price Index reported that the rate of inflation increased to 3.3 percent in March 2026 compared to March 2025. Their rise is nearly a full 1 percentage point higher than February’s annual pace of 2.4 percent, marking the highest month-over-month increase in prices since the economy entered a post-pandemic inflationary spiral in June 2022.
The culprit for the higher cost of living is likely pinned to the six-week-old war with Iran and subsequent closure of the Strait of Hormuz, one of the main sea lanes for global oil exports. Gasoline prices increased 21.2 percent in the last month, while the cost of fuel and oil of all types is up 30.7 percent, according to the Bureau of Labor Statistics.
For the real estate industry, higher inflation could indicate some pain on the horizon.
The U.S. construction industry was faltering even before the war with Iran, as prices rose at an annualized rate of 12.6 percent during the first two months of 2026, with overall construction input prices sitting 3.1 percent higher than March 2025, according to economic data from the Associated Builders and Contractors.
“Notably, this data does not reflect the precipitous increase in oil prices, which are near $100 per barrel as of this morning, caused by the conflict in Iran,” wrote Anirban Basu, chief economist of Associated Builders and Contractors. “That will put upward pressure on construction materials prices directly by raising diesel prices, and indirectly by raising the cost of shipping other inputs.”
The FTSE Nareit All Equity REITs Index — the measuring stick of publicly traded real estate companies — declined 6.1 percent in March alone, according to Nareit data.
Despite the disruption, by the end of March, REITs as a whole have still performed better than both the Dow Jones Industrial Average and the S&P 500 in 2026.
The FTSE Index posted returns of 3.8 percent at the close of the first quarter, while the Dow Jones fell 3.6 percent and the S&P 500 declined 4.6 percent, per Nareit.
Brian Pascus can be reached at bpascus@commercialobserver.com.
