Stories

Tue, 12 May 2026

Tue, 12 May 2026 US inflation jumps to 3.8% as energy costs surge from Iran war

The key measure of US inflation rises its highest level since May 2023 as consumers feel the impact of the Iran war.

* US inflation rate rose to 3.8% in April, the highest level since May 2023
* Gas prices hit $4.50 a gallon on average, the highest since July 2022
* Food costs contributed to the price increase, with grocery prices rising
* Housing costs also increased
* Almost half of the rise was driven by surging energy costs
* The national average airfare rose by 20.7% in April
* Average paychecks grew by 3.6%, while prices rose by 3.8%
* US stock markets opened lower on the news, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average down 0.7%