CPI report: April inflation jumped at fastest rate in three years
Inflation continued to rise in April as Iran war impacts energy prices
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. Consumer prices rose 3.8% in April from a year ago, and were up 0.6% from the month prior. Energy costs, including gasoline, increased last month, as did the cost of food at a rate not seen since last December. Food costs increased 0.5% last month, and gasoline was up 5.4%.
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.
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 helped push 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.
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.
The Source: Information in this article was taken from the U.S. Bureau of Labor Statistics’ Consumer Price Index for April 2026. Background information was taken from previous CPIs, the Associated Press and previous FOX Television Station reporting. This story was reported from Detroit.