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Before leaving for China today, President Trump was asked if he was concerned about how Americans feel paying higher prices due to the war in Iran. This is what he said. Every American President Trump saying Americans understand they have to pay higher prices while the war in Iran continues. Today’s inflation report, the Consumer Price Index, shows how much that war has. Impacted prices in the US. Overall inflation for all goods climbed sharply last month to 3.8% compared to the year before, the highest since 2025. While it’s hard to miss surging prices at the pump, economists also point out the hidden costs baked into the supply chain. Anything dependent on shipping and transportation, all greatly impacted by the. Struggle over the Strait of Hormuz. Rising diesel and jet fuel prices are adding to shipping costs and transportation budgets, trickling down into higher airfares and more expensive groceries, and experts say don’t expect costs to drop much even after the war ends. Unfortunately, consumers are going to have to just recognize that we will not be going back to the price level. The price that you pay for *** can of beans, for *** new phone, for *** new car. We will not be going back to what we had in January of 2025 or January of 2020. We’re just not going to go backwards. Today’s report also signals where borrowing costs are headed. Economists say with inflation running hot, the Federal Reserve is very unlikely going to cut back on interest rates this year, meaning your mortgage and credit card payments, for example, will also remain high.
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Inflation report highlights rising costs, gas prices amid Iran War
A new inflation report Tuesday shows inflation climbing to 3.8% year over year, driven by surging energy costs and the ongoing Iran War, according to economists.
A new inflation report reveals that prices are climbing sharply, with gas now averaging over $4.50 per gallon nationwide, nearly double what it was before the war in Iran began more than two months ago, according to AAA. Before leaving for China on Tuesday, President Donald Trump addressed concerns about rising costs. When asked how concerned he was about Americans paying higher prices due to the war, he replied, “They understand.” April’s Consumer Price Index report shows inflation for all goods rose to 3.8% compared to the previous year, the highest since 2025. And while it’s hard to miss surging prices at the pump, economists also point out other hidden costs baked into the supply chain. As the war in Iran disrupts global oil supplies and shipping routes, rising diesel and jet fuel prices are also increasing shipping and transportation costs, which are trickling down into higher airfares and grocery prices. “Unfortunately, consumers are going to have to just recognize that we will not be going back to the price level,” Bankrate financial analyst Stephen Kates said. “The price that you pay for a can of beans, for a new phone, for a new car will not be going back to what we had in January of 2025 or January of 2020. We’re just not going to go backwards.” April’s CPI report also indicates that borrowing costs may remain high. Economists say the Federal Reserve is unlikely to cut interest rates this year, meaning mortgage and credit card payments, for example, could stay elevated. Still, energy prices remain a significant driver of inflation, according to data analyzed by the Get The Facts team. Fuel oil saw the fastest increase, spiking 54% compared to last year, while gas prices rose by 28%. There is some good news in the CPI report: used cars and trucks, along with prescription drugs, have decreased in price compared to last year, while food prices overall have seen modest gains.Watch the latest coverage on the war in Iran:
A new inflation report reveals that prices are climbing sharply, with gas now averaging over $4.50 per gallon nationwide, nearly double what it was before the war in Iran began more than two months ago, according to AAA.
Before leaving for China on Tuesday, President Donald Trump addressed concerns about rising costs. When asked how concerned he was about Americans paying higher prices due to the war, he replied, “They understand.”
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April’s Consumer Price Index report shows inflation for all goods rose to 3.8% compared to the previous year, the highest since 2025.
And while it’s hard to miss surging prices at the pump, economists also point out other hidden costs baked into the supply chain. As the war in Iran disrupts global oil supplies and shipping routes, rising diesel and jet fuel prices are also increasing shipping and transportation costs, which are trickling down into higher airfares and grocery prices.
“Unfortunately, consumers are going to have to just recognize that we will not be going back to the price level,” Bankrate financial analyst Stephen Kates said. “The price that you pay for a can of beans, for a new phone, for a new car will not be going back to what we had in January of 2025 or January of 2020. We’re just not going to go backwards.”
April’s CPI report also indicates that borrowing costs may remain high. Economists say the Federal Reserve is unlikely to cut interest rates this year, meaning mortgage and credit card payments, for example, could stay elevated.
Still, energy prices remain a significant driver of inflation, according to data analyzed by the Get The Facts team. Fuel oil saw the fastest increase, spiking 54% compared to last year, while gas prices rose by 28%.
There is some good news in the CPI report: used cars and trucks, along with prescription drugs, have decreased in price compared to last year, while food prices overall have seen modest gains.
Watch the latest coverage on the war in Iran:
