US faces rising costs with Iran war driving energy prices, inflation higher

United States consumer prices have risen for the second consecutive month, marking the biggest annual increase in almost three years, as energy prices surged on the back of the US-Israel war on Iran. US consumer prices rose by 0.6 percent in April after a 0.9 percent increase in March, according to the Bureau of Labor Statistics consumer price index (CPI) report published on Tuesday. Recommended Stories list of 4 items end of list Prices ticked up by 3.8 percent on an annual basis, which is the largest jump since May 2023. Prices rose by 3.3 percent in March. The increase was driven by a surge in energy prices, including prices for petrol or gasoline, which rose by 5.4 percent. On an annual basis, the increase is stark. Energy prices surged by 17.9 percent over the last 12 months, with petrol prices up 28.4 percent compared to this time last year. The average price for a gallon (3.78 litres) of petrol is $4.50, according to the American Automobile Association (AAA), which tracks daily petrol prices. The average price was $2.98 when the US and Israel first struck Iran on February 28. “The passthrough of higher energy costs to non-energy prices was most apparent in airfares, which airlines have had to raise to cover rising jet fuel prices,” Bernard Yaros, lead US economist for Oxford Economics, said in a report provided to Al Jazeera. …