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Washington — The U.S. Labor Department reported Tuesday that consumer prices rose 3.8% year‑over‑year in April 2025 and climbed 0.6% from March as gasoline prices surged 5.4% for the month amid the 10‑week war with Iran. Labor Department figures showed gasoline up more than 28% compared with a year earlier, and AAA said the national average exceeded $4.50 a gallon. Excluding volatile food and energy, core consumer prices rose 0.4% from March and 2.8% year‑over‑year, suggesting the energy price spike has not yet broadly pushed up other goods and services. Grocery prices rose 0.7% month‑to‑month as meat costs increased. The Federal Reserve has become cautious about cutting interest rates amid the conflict; President Donald Trump has criticized the Fed and outgoing chair Jerome Powell, and Kevin Warsh is expected to be confirmed to the Fed this week. Some companies are already feeling strain: Whirlpool said revenue fell nearly 10% and that the war has caused a "recession-level industry decline" that weakened consumer confidence.

Prepared by Christopher Adams and reviewed by editorial team.