US consumer prices rise 3.8% as Iran war sends energy prices higher
Summary
U.S. consumer prices increased by 3.8% over the past year, mainly due to higher energy costs caused by the ongoing war involving Iran. Gasoline prices rose sharply, pushing up overall inflation, while other goods showed smaller price increases.Key Facts
- U.S. consumer prices rose 3.8% from April 2025 to April 2026.
- Gasoline prices increased 5.4% between March and April 2026.
- Gas prices are over $4.50 per gallon on average, 44% higher than last year.
- Energy price hikes are linked to the 10-week war with Iran and Tehran closing the Gulf of Hormuz, a key oil shipping route.
- Core inflation (excluding food and energy) rose 0.4% monthly and 2.8% yearly, showing limited spread of inflation beyond energy costs.
- Grocery prices went up 0.7% from March to April, with meat prices rising after a slight fall the previous month.
- Inflation remains above the Federal Reserve’s 2% target despite falling from a peak of 9.1% in mid-2022.
- President Trump has criticized the Federal Reserve for not cutting interest rates and has nominated Kevin Warsh as the new Fed chair; his approach to rates amid the conflict is uncertain.
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