Inflation in the US was registered at 3.8% in April, the highest level in nearly 3 years. The data were published by the relevant division of the US Department of Labor.
According to its findings, price growth in the country in April was 0.6% (compared to 0.9% in March and 0.3% in February). On an annual basis, inflation last month was 3.8%. The consequences of the war between the US and Israel with Iran, especially in the energy sector, are accelerating inflation. According to the Labor Department, gasoline prices in the United States rose 5.4% last month (compared to 21.2% in March), and energy prices in general rose 3.8% (compared to 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 increase in oil and gas prices before the market corrects. A prolonged confrontation could lead to expensive energy supplies and create tensions for countries that rely on imports.
According to IMF experts, something in between these two scenarios is possible. In this case, “tensions will deepen, energy prices will remain high, inflation will be difficult to control“ 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.