Consumer prices heated up in April, the second month of the Iran war, solidifying that the Federal Reserve will hold interest rates for now and will also be on watch for higher energy costs creeping into other prices — a potential catalyst for rate hikes.

The Consumer Price Index is expected to have jumped 3.8% over the last 12 months in April, amplifying concerns that inflation is threatening the economy and hurting household budgets. Rising fuel costs are the main source of inflation,

Welcome to The Hill’s Business & Economy newsletter{beacon} Business & Economy Business & Economy   The Big Story Inflation spikes to 3.8% in April amid Iran shock

CPI gas price index has surged 28% from a year ago, while overall energy costs are up nearly 18%, new inflation data shows.

The Iran war is already having a significant impact on prices.

The Consumer Price Index is the most commonly used measure of inflation in the United States. The CPI for all items increased by 0.9% in March 2026, on a seasonally adjusted basis, as reported by the U.

For months, Wall Street has been obsessed with one question: how many times will the Federal Reserve cut interest rates this year? Two cuts? Three? Maybe more if the economy weakens? Investors have hung on every speech from Federal Reserve Chair Jerome Powell looking for clues.

'Americans will remain financially squeezed for a while' The price squeeze that Americans are feeling has reached a level last seen three years ago. Many U.S. consumers are already strapped for cash, saving little and feeling the sting of higher prices at ...