Overview
- The Consumer Price Index, released Tuesday, showed annual inflation at 3.8%, the highest since May 2023.
- Energy costs tied to the Iran conflict made up about 40% of April’s increase, and any relief could lag for four to six weeks even after oil routes reopen.
- Gas prices have jumped sharply from a year ago, with many drivers paying about $4.50 a gallon and some reports citing a 28% rise.
- Lower-income families and Black households report the worst strain as fuel and groceries take a larger share of take‑home pay.
- Economists say the Federal Reserve is unlikely to cut interest rates soon, with some warning the conflict could even lead to higher borrowing costs.