US April CPI Rises 3.8% Annually; Iran War Drives Up Energy Prices

US-Iran War Key News

(Washington, May 12, Central News Agency comprehensive foreign report) As the 10-week war between the United States and Iran drives up energy prices, the US Consumer Price Index (CPI) in April once again rose sharply.

The Associated Press reported that the US Department of Labor announced today that the April CPI increased by 3.8% compared to the same period last year. Compared to the previous month, the April CPI rose by 0.6% from March, with gasoline prices increasing by as much as 5.4%.

Excluding volatile food and energy prices, the core CPI in April increased by 0.4% from March and by 2.8% from April last year. This indicates that the surge in energy prices has not yet significantly spread to other products.

Since the CPI annual growth rate peaked at 9.1% in June 2022, US inflation has generally stabilized and fallen. The main reasons for the inflation peak that year included supply chain bottlenecks after the lifting of COVID-19 (2019 coronavirus disease) restrictions and the impact of energy prices after Russia's full-scale invasion of Ukraine.

However, the inflation rate remains higher than the 2% target set by the US Federal Reserve (Fed).

On February 28 this year, the United States, in conjunction with Israel, launched an attack on Iran. In response, Iran blockaded the Strait of Hormuz, through which one-fifth of the world's oil and liquefied natural gas (LNG) transportation passes, causing energy prices to soar. (Compiler: Yang Zhaoyan) 1150512