Posted:
Updated:
(The Hill) — In April, the annual rate of inflation surged, spurred by escalating energy and food costs amid the conflict in Iran, as revealed by the Labor Department’s latest report on Tuesday.
The consumer price index (CPI), a widely used measure of inflation, increased by 3.8 percent over the year, with a notable 0.6 percent rise occurring just in April, as detailed in the freshly released figures from the Labor Department.
Economists expected the annual inflation rate to rise to 3.7 percent, according to consensus estimates, after hitting 3.3 percent in March.
Energy prices rose 3.8 percent last month alone as the war in Iran chokes off the global supply of oil through the Strait of Hormuz, drastically raising the cost of accessible crude and other products derived from it. Food prices were up 0.5 percent in April.
The latest inflation data is also a major political blow to President Donald Trump and Republican lawmakers, who face a potential midterm election revolt over the economy as price growth accelerates because of the Iran conflict.
Developing…