US inflation jumps to 3.8% as energy costs surge from Iran war

Key developments are emerging from the global stage. US inflation jumps to 3. 8% as energy costs surge from Iran war6 minutes ago Share Save Add as preferred on GoogleArchie MitchellBusiness reporterGetty ImagesUS prices rose in April at their fastest rate since May 2023 as the impact of the war in Iran was increasingly felt by consumers. A jump in the cost of gasoline and groceries pushed the consumer price index (CPI), the amount prices jumped by in the past 12 months, to 3.

It is the highest level since inflation hit 4% three years ago. The Bureau of Labor Statistics (BLS) said almost half of the rise was driven by surging energy costs, while housing and food costs also contributed. The US-Israel war in Iran, and the resulting effective closure of the key Strait of Hormuz shipping lane, has caused the price of a gallon of gas in the US to surge.

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The national average price for a gallon of unleaded is at its highest level since July 2022, at $4. 33), according to data from the AAA motoring group. The rise in April's inflation figure, from 3.

3% in March, makes it increasingly unlikely the Federal Reserve will cut interest rates this year. It also poses a challenge for US President Donald Trump and the Republicans ahead of November's midterm elections, after Trump's 2024 re-election campaign focused largely on his plans to cut inflation. Air fares and clothing also increased in the year to April, while the price of new cars fell slightly.

The development has drawn wide international attention, with diplomatic circles watching closely.