South Florida families feel the squeeze as inflation reaches a 3-year high. Here's how you can save.

Inflation hit its highest level in three years, driven in part by a sharp jump in gas prices, according to a new report from the Labor Department. The Consumer Price Index rose to 4.2 percent, up from 3.8 percent the previous month. That is the highest rate since April 2023.

Gas prices are up 40.5 percent compared to last year, while airfare has climbed 26.7 percent.

Economists say the war in Iran is playing a major role in the increases. The closure of the Strait of Hormuz is disrupting the global supply chain, putting upward pressure on energy costs.

South Florida families said they are feeling the squeeze. Stephanie James from Fort Lauderdale said, "I have two kids, and it makes it really hard to live — gas prices have been going up, food has been going up".

James also pointed to the gap between rising prices and stagnant wages. "We're not getting money at these jobs — they're sticking to these 1-3 percent raises, and inflation is much higher than that," James said.

Experts said prices are rising faster than paychecks, and the average household is feeling the squeeze. "The speed of this change is head-spinning for the average American," said Stephen Kates, a financial analyst at Bankrate.

Kates recommends starting by auditing what consumers are currently paying for. "So can you go and shop around for home or auto insurance? Can you go and cancel some subscriptions?" Kates suggested. He also stressed that growing your income is key — through advancing at a current job, finding a new one or picking up a side gig. Kates noted that the job market is improving, though hiring rates remain low for now.