US Inflation Hits Highest Level Since May 2023
US inflation rose to 3.8% in April. This is the highest level since May 2023.
The US is at war with Iran and energy costs surged as a result. Energy price rises drove much of the overall inflation increase.
Gasoline prices rose 28.4% compared to last year. Energy alone made up over 40% of the monthly rise.
But price rises spread beyond energy. Shelter costs rose 0.6%.
Clothing and airline prices also went up. Core inflation which strips out food and energy came in at 2.8%.
That was better than experts had expected. Sources say a data quirk from a government shutdown in October 2025 also pushed shelter figures higher. Experts say the Iran war is not the only cause of rising prices.
Klear Note — Inflation measures how fast prices rise for everyday goods. Higher inflation means your money buys less stuff. The US tracks inflation monthly to guide economic decisions.
Key Terms 3
- inflation When prices rise and money buys less than before
- core inflation Inflation measured without food and energy prices included
- shelter costs The cost of renting or owning a home