The Labor Department released its Consumer Price Index report Tuesday, showing prices for Americans continued to increase last month as the war with Iran continues.
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Energy costs, including gasoline, increased last month, as did the cost of food at a rate not seen since last December.
Consumer price index
Big picture view:
Rising gas prices helpedpush inflation up in April in the biggest year-over-year increase since May 2023, according to the U.S. Bureau of Labor Statistics’ data.
By the numbers:
Consumer prices were up 3.8% last month compared to April 2025.
Compared to the month prior, March 2026, consumer prices jumped 0.6%.
The backstory:
Before the war in Iran, inflation had been dropping more or less steadily since peaking with a 9.1% year-over-year spike in prices in June 2022, a surge caused by supply chain bottlenecks at the end of COVID-19 lockdowns and an energy price shock following the Russian invasion of Ukraine.
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Gas prices
High gas prices are displayed at a Shell gas station on May 11, 2026 in Burbank, California. (Photo by Mario Tama/Getty Images)
Dig deeper:
Labor Department figures showed that gasoline prices are up more than 28% compared to a year ago.
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By the numbers:
AAA says the average gallon of gasoline costs motorists more than $4.50 a gallon, about 44% more than it cost last year at this time.
The other side:
Excluding volatile food and energy costs, so-called consumer core prices rose 0.4% last month from March and 2.8% from April 2025. The Associated Press reported the relatively modest readings could suggest the high energy costs from the war aren’t spilling over much yet into other prices.
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Food costs
Dig deeper:
Grocery prices rose 0.7% from March to April, as meat prices rose, after falling slightly the month before.
War in Iran
Meanwhile:
President Donald Trump said last month that gas prices may remain elevated before the midterm elections in November. The national average for gas in the U.S. was slightly over $4 a gallon at the time of his interview.
What’s next:
A big question for now is how long the oil and gas price shock lasts and whether it will lead to a broader, long-lasting inflation boost, similar to what occurred in the spring of 2022 after Russia invaded Ukraine.