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US Inflation Hits 3.8% As Iran War Drives Energy Prices Higher

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US Inflation Hits 3.8% As Iran War Drives Energy Prices Higher

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May 13, 2026
May 13, 2026 Updated 1 hr ago
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US prices have risen at their fastest rate since May 2023, as the war in Iran continues to drive up energy prices and everyday costs for Americans. Prices rose 0.6% monthly, according to Consumer Price Index data released by the Bureau of Labor Statistics (BLS). The BLS also stated that nearly half of this increase was driven by rising energy prices, but housing and food costs were also a factor. At 3.8%, inflation is now rising faster than American wages for the first time in three years, with the average paycheck growing by just 3.6%. The conflict in Iran, which has effectively shut down the key Strait of Hormuz shipping lane, has sent oil prices soaring and driven up the cost of gas in the US. Prior to the Iran conflict, inflation had slowed to 2.4% as the US economy continued to recover from the severe inflation surge that followed the COVID-19 pandemic. The national average price for a gallon of unleaded fuel is currently $4.50, the highest level it has seen since July 2022, according to data from the AAA motoring group. Other costs essential to everyday living also increased across the board. Food prices rose by 3.8%, while energy services jumped to 5.4%.

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