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

U.S. inflation accelerated to 3.8% in April, its highest level since 2019, driven by a sharp surge in energy costs linked to conflict in the Middle East [1]. The consumer price index (CPI) rose from 3.3% in March, with the Bureau of Labor Statistics reporting that almost half of the increase was due to energy prices [1]. The national average price for a gallon of unleaded gasoline hit $4.50, its highest level since July 2022, according to the AAA motoring group [1]. The primary body attributes this spike to the U.S.-Israel war in Iran and the resulting effective closure of the Strait of Hormuz, a key global shipping lane [1]. The rise makes it increasingly unlikely the Federal Reserve will cut interest rates this year [1]. The inflation data poses a political challenge for President Donald Trump and Republicans ahead of the November midterm elections, after Trump's re-election campaign focused on plans to cut inflation [1]. Airfares, clothing, and housing costs also increased, while new car prices fell slightly [1].