'Costs Are Out of Control': Trump's Iran War Pushes US Inflation to Highest Level in Three Years

Federal data released Tuesday showed US inflation rising to the highest level it's been since May 2023, as President Donald Trump's Iran War has led to increases in the costs of both energy and food.

The latest Consumer Price Index (CPI) released by the US Bureau of Labor Statistics finds that prices in April posted a year-over-year increase of 3.8%, above economists' expectations of a 3.7% increase, driven by energy prices that surged nearly 18% from April 2025.

The price of groceries also notched significant increases during the month, the report notes.

"Five of the six major grocery store food group indexes increased in April," says the report. "The index for meats, poultry, fish, and eggs increased 1.3% over the month as the index for beef rose 2.7%. The fruits and vegetables index increased 1.8% in April and the nonalcoholic beverages index rose 1.1%. The index for dairy and related products increased 0.8% over the month and the index for cereals and bakery products rose 0.1% in April."

Economists said the new CPI report showed significant trouble ahead for American consumers, who last month registered record-low sentiment in the University of Michigan’s Surveys of Consumers, driven in large part by anxiety over price increases caused by the Iran war.

Joseph Brusuelas, chief economist at RSM, told The Wall Street Journal that "the American economy has entered a new chapter where inflation appears to have stepped up," and predicted that "median American families are going to find it very challenging to adjust going into the second half of the year."

Heather Long, chief economist at Navy Federal Credit Union, observed that the cost of living in April rose above average monthly wage gains, meaning US consumers are no longer just treading water but falling behind.

"Inflation is now eating up all wage gains for the first time in about three years," she wrote. "This is painful for Americans and a true financial squeeze."

University of Michigan economist Justin Wolfers highlighted just how much the latest CPI report exposes the false promises President Donald Trump made during the 2024 presidential campaign.

"Trump campaigned on bringing down the cost of living 'starting on day one,'" he wrote, "and then: started a trade war; deported much of the farm workforce, bombed Iran, allowed healthcare subsidies to expire, cut food assistance, ran an interest-rate boosting deficit, and attacked Fed independence."

Rep. Brendan Boyle (D-Pa.) similarly ripped Trump's economic mismanagement in the wake of the CPI report.

"From his tariff taxes to his disastrous war in Iran, President Trump is making life even harder for American families," said Boyle. "Today’s inflation data confirms what everyone can see: costs are out of control, and President Trump is responsible."

The latest CPI data comes as a poll from CNN released Tuesday shows a record-high 70% of Americans disapprove of Trump's handling of the economy, with 75% of US voters saying the president's unprovoked war of choice with Iran has had a negative effect on their financial situations.

Trump's approval on the economy was a strength throughout his first term, even as polls showed him to be otherwise unpopular. As noted by CNN senior political reporter Aaron Blake, Trump's disapproval on the economy "never even reached 50% in his first term," but has now been at over 60% for the last year.

Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, said in a statement that "Trump chose to reignite inflation with his illegal and reckless war in Iran, and more than two months in, there’s no offramp in sight."

"Every day the war continues, prices climb higher and will stay there for months after it ends," said Jacquez. "As Americans continue to rank cost of living and inflation as their most important issues, Trump is more focused on finishing his billion-dollar ballroom than lowering prices for American families.”