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Economy
May 12, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

US Inflation Rises as Iran War Drives Energy Prices Higher

AI Summary
The US consumer prices have risen for the second consecutive month, driven by a surge in energy prices due to the ongoing conflict with Iran. The annual inflation rate increased to 3.8%, the largest jump since May 2023.

The Lead

United States consumer prices have risen for the second consecutive month, marking the biggest annual increase in almost three years, as energy prices surged on the back of the US-Israel war on Iran.

Inflation Rate Increases

US consumer prices rose by 0.6 percent in April after a 0.9 percent increase in March, according to the Bureau of Labor Statistics consumer price index (CPI) report published on Tuesday. Prices ticked up by 3.8 percent on an annual basis, which is the largest jump since May 2023.

Energy Prices Surge

The increase was driven by a surge in energy prices, including prices for petrol or gasoline, which rose by 5.4 percent. On an annual basis, the increase is stark. Energy prices surged by 17.9 percent over the last 12 months, with petrol prices up 28.4 percent compared to this time last year.

Economic Impact

The average price for a gallon (3.78 litres) of petrol is $4.50, according to the American Automobile Association (AAA), which tracks daily petrol prices. The average price was $2.98 when the US and Israel first struck Iran on February 28.

Future Outlook

Economists say that conflict with Iran will keep prices high. “Every day the war continues, prices climb higher and will stay there for months after it ends,” Alex Jacquez, a former member of the White House National Economic Council under former US President Joe Biden, said in a statement provided to Al Jazeera.