Inflation heated up in April to the hottest level in three years as the Iran war drove energy prices higher and started to filter through the economy – likely keeping the Fed on hold when it comes to interest rates.
The Consumer Price Index jumped 3.8% in April over the past 12 months – higher than an expected 3.7% increase and the highest headline rate since May 2023, the Bureau of Labor Statistics said Friday.
The blockade of the Strait of Hormuz has driven energy and gasoline prices higher. Getty Images As the Iran war disrupts global energy supplies and sends prices soaring, the headline figure is no longer inching toward the Fed’s 2% goal – instead rising sharply from March’s 3.3% gain and February’s 2.4% pace.
The core CPI figure – which excludes volatile food and energy prices – rose to 2.8% from March’s 2.6% reading, signaling it’s not just gasoline driving the increase.
This is a developing story. Please check back for updates.
