Inflation rises 3.8% in April as Iran War drives up holiday costs
8 reported
According to a CNBC report, U.S. consumers face higher prices for fuel, food, and travel heading into Memorial Day weekend as the Iran War reignites inflation. Total inflation rose 3.8% in April from a year ago, the highest annual rate since 2023, based on federal government data. Consumer sentiment hit its lowest level on record in May, per University of Michigan survey data, partly due to spiking oil prices amid the nearly three-month-old Middle East war. Ground beef and steaks are up 16% compared with 2025, while gasoline prices soared more than 28% year over year. Airline fares surged 20.7% from April 2025 to 2026, reaching their highest level since 2022. A record 45 million Americans are expected to travel at least 50 miles from home over the holiday period, according to AAA.
What’s reported
Total inflation for shoppers rose 3.8% in April from the same month a year ago, the highest annual rate since 2023.
Consumer sentiment hit its lowest level on record in May, according to University of Michigan survey data.
Ground beef and steaks are up as much as 16% compared with 2025; frankfurters cost nearly 11% more than a year ago.
Tomatoes are up close to 40%; lettuce is up about 8%; coffee prices have soared more than 18%.
Gasoline prices soared more than 28% year over year; the average price for a gallon of unleaded gas nationally was its highest in four years.
Airline fares surged 20.7% from April 2025 to 2026, reaching their highest level since 2022.
AAA anticipates 45 million Americans will travel at least 50 miles from home over the holiday period, up 0.4% from last year.
Spirit Airlines cited costlier jet fuel when shuttering operations earlier this month.
Key figures
Stephen Juneau, senior U.S. economist at Bank of America
Chris Kempczinski, CEO of McDonald's
Kimberly Palmer, personal finance expert at NerdWallet
Sources: CNBC
