US consumer prices rose 3.8% annually in April 2025, the highest rate in nearly three years, driven by energy costs from the Iran war.

The Bureau of Labor Statistics reported Tuesday that the consumer price index rose 3.8% year-over-year in April 2025, up from 3.3% in March, marking the largest annual increase since May 2023. Energy prices surged 17.9% over the past year, with gasoline up 28.4%, largely attributed to the closure of the Strait of Hormuz during the ongoing US-Iran war. Core inflation excluding food and energy rose 0.4% month-over-month and 2.8% annually.