U.S. consumer prices climbed sharply again last month as the 10-week war with Iran pushed energy prices higher.
The Labor Department’s consumer price index rose 3.8% from April 2025, according to data released Tuesday. On a month-to-month basis, April prices rose 0.6% from March as gasoline prices rose 5.4% during the month; the month-over-month gain was down from a 0.9% increase from February to March.
Labor Department figures show gasoline prices are up more than 28% compared with a year ago. However, the AAA motor club listed the average regular gallon of gasoline above $4.50 on Tuesday, about 44% more than it cost last year at this time.
Excluding volatile food and energy costs, so-called consumer core prices rose 0.4% last month from March and 2.8% from April 2025, relatively modest readings that suggest the energy price burst has yet to spill over more broadly into other prices.
Grocery prices rose 0.7% from March to April as meat prices rose. Those prices had retreated slightly the month before.
“Inflation is the key drag on the U.S. economy now,” Heather Long, chief economist at Navy Federal Credit Union writes. “There is a real financial squeeze underway. For the first time in three years, inflation is eating up all wage gains. This is a setback for middle-class and lower-income households and they know it. They are having to cut back on spending and stretch every dollar.”
The Associated Press has the full story.
