U.S. Inflation Jumps 3.8% in April as Iran War Drives Gasoline Costs

U.S. consumer prices rose 3.8% in April compared with April 2025, the highest level in three years, as the 10-week war with Iran pushed gasoline and other costs higher.

“Inflation jumps to its highest level in three years The war has ratcheted up prices for gasoline, airfares and other expenses”

ABC News

The Labor Department data also showed April prices increased 0.6% from March, while gasoline prices rose 5.4% month-to-month, and gasoline prices were up more than 28% compared with a year ago.

ABC News

The Express Tribune said energy costs drove much of the increase, with energy costs rising 3.8% and accounting for more than 40% of the monthly increase.

The Express Tribune also reported that core inflation excluding food and energy rose 0.4% in April, the highest increase since early 2025, while shelter costs edged higher.

In the same reporting, the Guardian said prices rose 3.8% over the last year and that energy prices rose 3.8% in April, accounting for over 40% of the overall monthly increase.

AP tied the inflation surge directly to the war, saying the Iran conflict delivered higher gasoline prices and “more pain for Americans,” with April prices up from a 3.3% year-over-year gain in March.

Heather Long, chief economist at Navy Federal Credit Union, said, “There is a real financial squeeze underway,” adding that “For the first time in three years, inflation is eating up all wage gains.”

AP News

Fox News reported that Rep. Nancy Pelosi said, “From the pump to the grocery store, the President’s reckless war of choice in Iran is hurting the American people.”

Fox News also quoted Rep. Marjorie Taylor Greene writing, “Inflation is rising and gas is over $4.50 per gallon all because Trump went to war with Iran.”

In the same Fox News account, the AAA national average price for regular gas was listed as $4.504, and it said that was below the record of $5.016 set in June of 2022.

The Express Tribune said the inflation report reinforced expectations that the Federal Reserve may maintain interest rates at current levels for an extended period, with traders “fully pricing in a hold” and “no immediate cuts expected.”

“- Published US prices rose in April at their fastest rate since May 2023 as the impact of the war in Iran was increasingly felt by consumers”

BBC

The Express Tribune also included Bridgewater Associates founder Ray Dalio warning that the U.S. economy is entering a “stagflationary” phase, saying, “We are clearly in a period of stagflation.”

NBC News reported that the BLS said the index for energy rose 3.8 percent in April, accounting for over forty percent of the monthly all items increase, and it added that energy costs likely would not start to feed through to core goods prices for at least a few more months.

The Guardian said rates currently sit at a range of 3.5% to 3.75%, and it reported that Kevin Warsh, the incoming US Federal Reserve chair, would have to convince the rest of the Fed’s 11 voting members that the central bank should continue cutting rates.

ABC News said the Middle East conflict prompted the Iranian closure of the Strait of Hormuz, and it reported that the standoff sent gasoline prices surging in April, with gasoline prices 5% higher in April than March and airline fares climbing 2.8% from the previous month.