Inflation breakdown for April 2026 — in one chart
Fuel prices are displayed on a sign as customers fill up their vehicles at a gas station in Miami on April 13, 2026.
Joe Raedle | Getty Images
Inflation jumped to its highest level in nearly three years in April as rising gas prices due to the Iran war increased the cost of many consumer goods.
The consumer price index, a key measure of inflation, rose 3.8% in April from a year earlier, the U.S. Bureau of Labor Statistics reported Tuesday. This is up from 3.3% in March.
April data paints a clearer picture of the financial consequences for consumers after more than a month of conflict in the Middle East.
“American households will continue to struggle to get through this, and that will be the case for the foreseeable future,” said Mark Zandi, chief economist at Moody’s.
High oil prices create ‘double squeeze’
President earlier this week Donald Trump rejected Iran’s latest offer to end the war, sending oil futures higher.
Iran continued to restrict energy supplies through the Strait of Hormuz, a waterway used to transport about one-fifth of the world’s oil. “This is like the aorta in your body,” said Brian Bethune, an economics professor at Boston College. “When this is suppressed, it is the entire global economy that is affected.”
Oil prices, as measured by Brent crude, the global price benchmark, rose from around $70 per barrel before the conflict began to $118 per barrel by the end of April. Prices are hovering above $107 per barrel as of Tuesday.
There was also a sharp increase in products refined from oil, such as gasoline and jet fuel.
According to CPI data, gas prices have increased by approximately 50 percent since February 28, when the war with Iran began, and have increased by 28.4 percent throughout the year.
Consumers paid a national average of $4.50 per gallon as of Tuesday. AAA – was about $3.14 a year ago.
According to CPI data, airline fares increased by 20.7% in the last 12 months.
The sudden, steep increase is an example of how the cost of jet fuel is being passed on directly to passengers, said Stephen Kates, a certified financial planner and financial analyst at Bankrate.
“Consumers are currently stuck in a ‘double squeeze,’ grappling with both the acute pain of rising gas prices and the slow increase in other key budget items,” Kates said. “As most major categories simultaneously become more expensive, households will find it more difficult to shift budget dollars from one category to another.”
The impact of the Iran war on food prices
Economists noted that the oil shock also puts upward pressure on food prices as the conflict continues.
For example, the rise in diesel prices affects transportation costs of food trucks moving food to grocery stores, said Boston College’s Bethune.
“The fuel surcharges included in these contracts take some time to work through the system,” Bethune said.
Fertilizer Another important export from the Strait of Hormuz poses a threat of price increases for farmers.
A customer shops for beef at a grocery store in Los Angeles, April 6, 2026.
Justin Sullivan | Getty Images
“You can see the transition gaining momentum,” Zandi said.
According to CPI data, food prices increased by 3.2 percent compared to last year.
“The biggest thing for most families is the cost of a gallon of unleaded gasoline and a pound of beef, and there are quite a few increases on both,” Zandi said. According to CPI data, beef prices increased by 14.8% on an annual basis.
Inflation may fall slowly
Economists say it could take weeks or months for the inflationary effects of the war to subside.
Even if more oil tankers pass through the Strait of Hormuz, it may take some time for the entire supply chain to start working again, Bethune said.
“If we optimistically reach a resolution in the next few weeks, it could take two months for things to start normalizing,” Bethune said.
“The pessimistic scenario is at least twice that, if not longer; it could take six to nine months to get back to where we were in January or February,” he said.
Fed under pressure
Latest inflation reading strengthens expectations The Federal Reserve will keep interest rates unchanged for a period of time and do little to ease consumers’ current affordability challenges.
“The Federal Reserve, soon to be led by Kevin Warsh, is in a very difficult position because it cannot ignore the annual inflation rate climbing toward 4%,” Bankrate’s Kates said.
“Even if geopolitical tensions ease, the trajectory of inflation will not reverse immediately, making it unlikely we will see any rate cuts this year,” he said.
