Inflation continued to rise in April as consumer price growth has picked up due to the impact of the Iran war on energy markets and gas prices.

CPI gas price index has surged 28% from a year ago, while overall energy costs are up nearly 18%, new inflation data shows.

Inflation rose 3.8% over 12 months in April, the highest since May 2023 and in line with forecasts. The Iran war has spiked gasoline prices, pushing up the overall inflation rate. "Core" inflation outside of food and gas prices rose 2.

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

As the pace of inflation increases, that may lead to a higher Social Security cost-of-living adjustment for 2027, according to new expert estimates.

Even though inflation is hot, the mechanism is demand destruction: higher gasoline/food costs squeeze consumers, slowing growth. That combination typically eventually drives a “growth scare” bid for long Treasuries,

Although Wall Street has spent the spring of 2026 in melt-up mode, with the S&P 500 up 26% over the past year and tacking on another 8.6% in just the last month, this morning’s inflation report rattled the easy narrative.

'Americans will remain financially squeezed for a while' The price squeeze that Americans are feeling has reached a level last seen three years ago. Many U.S. consumers are already strapped for cash, saving little and feeling the sting of higher prices at ...

Prices are now rising faster than wages, just like during much of the Biden years. The war in Iran is largely to blame.

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