US inflation jumps to 3.8% as energy costs surge from Iran war

US prices rose at their fastest rate since May 2023 in April, driven by a jump in energy costs, groceries, and housing expenses. The consumer price index (CPI) increased to 3.8%, the highest level since inflation hit 4% three years ago. Energy costs surged, with gasoline prices rising, and the national average price for a gallon of unleaded reaching its highest level since July 2022. This rise in inflation makes it unlikely for the Federal Reserve to cut interest rates this year.