Inflation recorded a significant increase in the United States in April, reaching 3.8% on an annual basis, reflecting rising fuel prices due to the war in the Middle East as well as a slight increase in food prices, according to official data released today.
The last time inflation reached such levels was in May 2023.
By comparison, the Consumer Price Index (CPI) had increased by 3.3% in March and 2.4% in February.
Gasoline prices the main cause
The increase is mainly attributed to gasoline prices (+28.4% year-on-year), although other sectors of the economy are also seeing price rises, from supermarket shopping to rents.
The war in the Middle East, which began on February 28 with US-Israeli strikes on Iran, appears to have reached a deadlock, while oil prices remain above $100 per barrel. A gallon of regular gasoline (about 3.8 liters) now costs around $4.5 in the US, up from $3 before the war, according to data from the American Automobile Association (AAA).
Just months before the crucial midterm elections, the administration of President Donald Trump insists that these economic disruptions are temporary. The Republican occupant of the White House had campaigned on restoring Americans’ purchasing power as one of his main priorities.
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