US Inflation Jumps To 3.8% In April, Highest In Nearly Three Years As War In Iran Disrupts Economy

2026-05-12 09:00:39

(MENAFN- Live Mint) Inflation in the United States surged to 3.8 per cent in April, marking the highest level in roughly three years, as the Iran war causes a ripple effect across the US economy, data released on Tuesday showed.

Inflation rose broadly in line with economists' expectations overall. Compared with the previous month, consumer prices increased by 0.6 per cent. The Bureau of Labor Statistics noted that core inflation, which excludes food and energy costs, also increased by 0.4 per cent as compared to the previous month.

Additionally, energy prices soared 3.8 per cent in April, contributing more than 40 per cent of the overall monthly increase in consumer prices. Shelter costs also rose, increasing 0.6 per cent during the month. Food prices were up 0.5 per cent, driven by a 0.7 per cent rise in grocery prices, while dining-out costs increased 0.2 per cent.

As recently as February, inflation stood at 2.4 per cent, clocking in just a tick above the Federal Reserve's target level of 2 per cent. In March, the US inflation stood at 3.3 per cent after an oil shock was triggered by the US and Israel's war in Iran, which began in late February.

This is a developing story. More details awaited.

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