US inflation surged to 3.8% in April, its highest level in nearly three years
Energy costs drove 40% of the monthly increase, and gasoline prices rose 28.4% from a year earlier, the Labor Department said.
- The Bureau of Labor Statistics reported Tuesday that inflation rose 3.8% annually in April, with prices increasing 0.6% between March and April, exceeding the Dow Jones consensus by 0.1 percentage point.
- Fighting in the Middle East has snarled tanker traffic in the Strait of Hormuz, pushing inflation to its highest level in almost three years as energy costs surged across the economy.
- Energy prices accounted for 40% of the monthly increase, while air fares jumped 2.8% as Americans faced higher travel costs.
- President Trump announced on Monday that his administration would suspend the federal gas tax—18.4 cents per gallon for regular gas and 24.4 cents for diesel—"for a period of time."
- Mark Zandi, chief economist at Moody Analytics, expects inflation to accelerate through the summer before falling to 3.3% by year-end, as higher energy costs ripple through groceries and manufactured goods.
266 Articles
266 Articles
Inflation surges to 3.8% in April as the war in Iran spikes gas and food prices
U.S. consumer prices climbed sharply again last month as the 10-week war with Iran delivered higher gasoline prices and more pain for Americans. The Labor Department’s consumer price index rose 3.8% from April 2025, the biggest jump in three years, and up from a 3.3% year-over-year gain in March. On a month-to-month basis, April prices rose 0.6% from March as gasoline prices rose 5.4%, according to the data released Tuesday. The month-over-month…
US inflation hits three-year high amid fears of stagflation
United States inflation accelerated for a second straight month in April as rising energy and food costs, driven by the ongoing Iran war, added fresh pressure on households and deepened concerns over the economic outlook, according to official data released on Tuesday. The Consumer Price Index (CPI) rose 0.6% in April, following a sharp 0.9% increase in March, the US Labour Department said. The latest reading pushed annual inflation to 3.8%, the…
Inflation in the US has risen to the highest level in three years.
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