Inflation in the US rises to 3.8% as Iran war increases fuel prices

Written by journalist Danylo Aleksandrov

In the US the prices on consumer products rose 3.8% in April as the war against Iran caused a 28% jump in fuel costs, while the data from the government shows that for the first time in 3 years the real wages have fallen.

According to the data that became available on Tuesday, from April last year the US Department of Labour's consumer price index rose 3.8%. Counting by month, prices in April rose 0.6% from March, which is lower than 0.9% increase from February to March. Petrol prices rose by 5.4% during April.

According to data from the US government, compared to 2025, petrol prices are by 28% higher. It is reported by AAA motor club, that on average on Tuesday, for a gallon (3.7 liters) of petrol you had to pay more than $4.50 (€3.84) – almost a half 44% more than it was in this period in 2025.

At the same time the consumer core prices rose only by 2.8% in comparison to April last year. Grocery prices are up by only 0.7% from March to April. This data suggests that the energy price hike has not yet reached other economical segments, with higher prices to come later.

Economists highlight that the main problem for the US economy at the moment is the inflation. Because of inflation, for the first time in 3 years the real wages fall (by 0.3%) – a challenge for US lower income households.

Since summer 2022 the inflation was on a steady decrease after chaos caused by first the COVID pandemic and then by Russian full-scale invasion of Ukraine. But after the beginning of joint US and Israel operation against Iran on 28th of February, a new challenge to world economy arose when Iran blocked the critical Strait of Hormuz. This caused a sharp increase in fuel prices, which in turn influence the cost of other products. While negotiations between parties to this war are underway, it still unclear when and how the waterway will be open to maritime traffic.