International Desk:
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.
A jump in the cost of gasoline and groceries pushed the consumer price index (CPI), the amount prices jumped by in the past 12 months, to 3.8%.
It is the highest level since inflation hit 4% three years ago. The Bureau of Labor Statistics (BLS) said almost half of the rise was driven by surging energy costs, while housing and food costs also contributed.
The US-Israel war in Iran, and the resulting effective closure of the key Strait of Hormuz shipping lane, has caused the price of a gallon of gas in the US to surge.
The national average price for a gallon of unleaded is at its highest level since July 2022, at $4.50 (£3.33), according to data from the AAA motoring group.
The rise in April’s inflation figure, from 3.3% in March, makes it increasingly unlikely the Federal Reserve will cut interest rates this year.
It also poses a challenge for US President Donald Trump and the Republicans ahead of November’s midterm elections, after Trump’s 2024 re-election campaign focused largely on his plans to cut inflation.
