The war with Iran continues to wreak havoc on the U.S. inflation rate and with energy prices not only here, but around the world.
Statistics released by the Bureau of Labor Statistics shows U.S. inflation jumped to 3.8% in April over the last year. It’s the highest jump since 2023.
It’s the second official measure of the consumer price index since the start of the war with Iran. In March, prices rose 3.3%, up from 2.4% in February.
According to the BLS, energy prices rose 3.8% in April, accounting for more than 40% of the overall monthly increase. To the surprise of no one who drives, gas prices were up 28.4%. The national average price for a gallon of gas – which has steadily increased since the war started in February – is now more than a dollar higher per gallon than it was a year ago, according to data from AAA.
The cost to fly has also risen, up 20.7%. Costs essential to everyday living also increased across the board: food prices increased by 3.8%, while energy services, which includes electricity and utilities, rose 5.4%.
Core CPI – which excludes volatile food and energy prices – increased more modestly, at 2.8%.
According to a report in The Guardian, a recent survey from the University of Michigan on US consumer sentiment reflected the worsening price conditions. Consumer sentiment in May dropped notably compared with the same periods the year before, the survey found, as did confidence in financial institutions such as the Federal Reserve.
