US inflation hits nearly three-year high due to war with Iran

WASHINGTON, May 12. /TASS/. Inflation in the US was recorded at 3.8% in April, the highest level in nearly three years, the US Bureau of Labor Statistics reported. According to its findings, price growth in the country in April was 0.6% (0.9% in March and 0.3% in February). In annual terms, the inflation rate last month was 3.8%. The consequences of the US-Israeli war with Iran, particularly in the energy sector, are accelerating inflation. According to the bureau, gasoline prices in the US last month rose by 5.4% (21.2% in March), and energy prices overall rose by 3.8% (10.9% in March). On March 30, the International Monetary Fund (IMF) warned that a US-Israeli military operation against Iran would lead to higher prices and a slowdown in global economic growth. According to the IMF, a short-term conflict could lead to a sharp rise in oil and gas prices before a market correction occurs. A prolonged standoff could lead to costly energy supplies and create tensions for countries that rely on imports. Also, as the IMF experts note, something between these two scenarios is possible. In this case, "tensions will prolong, energy prices will remain high, inflation will be difficult to curb," and "uncertainty and geopolitical risk" will persist. Much depends on how long the conflict lasts, how far it spreads, and what damage it causes to infrastructure and supply chains, the IMF noted.