US inflation accelerated in April as higher energy prices linked to the conflict in Iran pushed up the overall cost of living. The consumer price index rose 3.8% over the previous 12 months, the fastest pace since May 2023 and the highest level since inflation reached 4% three years ago, according to the Bureau of Labor Statistics. Nearly half of the increase was driven by surging energy costs, while housing and food prices also climbed. With the Strait of Hormuz effectively closed and gasoline averaging $4.50 a gallon, analysts say the Federal Reserve is now unlikely to cut interest rates this year.

Prepared by Christopher Adams and reviewed by editorial team.