Consumer prices heated up in April, the second month of the Iran war, solidifying that the Federal Reserve will hold interest rates for now and will also be on watch for higher energy costs creeping into other prices — a potential catalyst for rate hikes.

The Iran war has pushed up gasoline, groceries and other prices for consumers.

Inflation accelerated in April at its fastest pace since May 2023 as rising gas prices ties to the war with Iran pushed up costs.

A surge in gas prices tied to the Iran conflict has pushed inflation to its highest level since 2023—raising the bar for savers once again.

Welcome to The Hill’s Business & Economy newsletter{beacon} Business & Economy Business & Economy   The Big Story Inflation spikes to 3.8% in April amid Iran shock

The Iran war is already having a significant impact on prices.

The Consumer Price Index is the most commonly used measure of inflation in the United States. The CPI for all items increased by 0.9% in March 2026, on a seasonally adjusted basis, as reported by the U.

By Lucia Mutikani WASHINGTON, May 12 (Reuters) - U.S. consumer inflation increased further in April, with the annual rate posting its largest gain in three years, heightening political risks for President Donald Trump and his Republican party ahead of November's midterm elections.

The Consumer Price Index is expected to have jumped 3.8% over the last 12 months in April, amplifying concerns that inflation is threatening the economy and hurting household budgets. Rising fuel costs are the main source of inflation,