US consumer prices jump as Iran war sends energy prices rapidly higher
The Labor Department reported a sharp increase in consumer prices for April, fueled by a 5.4% jump in gasoline costs amid the ongoing conflict with Iran
U.S. consumer prices climbed sharply last month as the ongoing 10-week war with Iran continued to push energy costs significantly higher. The Labor Department reported on Tuesday that the consumer price index for April rose 3.8% compared to the same month in 2025. This annual increase reflects the significant impact the conflict has had on global energy markets and domestic fuel costs.[1][2]
On a month-to-month basis, consumer prices in April were up 0.6% from March. This monthly gain was largely driven by a 5.4% spike in gasoline prices. Despite the volatility in the energy sector, the Labor Department noted that so-called core consumer prices, which exclude food and energy costs, rose by a more modest 0.4% in April.[1]
The annual core inflation rate stood at 2.8% in April, a figure that economists often view as a more stable indicator of long-term price trends. These relatively modest readings in the core index suggest that the recent burst in energy prices has not yet fully spilled over into other areas of the economy, such as services or manufactured goods, even as the war enters its third month.[1]
