Inflation accelerated in April to an annual rate of 3.8%, the highest since May 2023, as the Iran war pushed up energy costs and raised prices across the economy.

By the numbers

Economists predicted inflation would jump to 3.7% on an annual basis, up from the 3.3% reading in March, according to a FactSet poll.

The CPI, a basket of goods and services typically purchased by consumers, tracks price changes over time.

Inflation stood at 2.4% for the first two months of the year, but jumped in March after the war in the Middle East broke out. The conflict has constrained global oil supplies, sending gas prices to their highest levels since July 2022 and driving up costs for diesel-powered trucks that transport American goods.

President Trump told CBS News in a phone interview on Monday that his administration would suspend the federal gas tax - which is 18.4 cents per gallon for regular gas and 24.4 cents per gallon for diesel - "for a period of time." However, experts say that the move may only provide limited relief to U.S. motorists.

In the interview, the president also rejected the idea of a bailout for U.S. air carriers dealing with higher jet fuel costs. Many carriers have hiked their ticket prices due to higher fuel costs, dealing a blow to Americans at the start of the summer travel season.

What the experts say 

Mark Zandi, chief economist at Moody's Analytics, expects inflation to keep accelerating through the summer even if the conflict ends in the next few weeks, before falling to 3.3% by year-end.

Higher energy prices from the war will increase the cost of groceries and other goods delivered by diesel-powered trucks, he told CBS News before the CPI release.

"The pass-through will broaden to nearly all manufactured goods, which are energy-intensive, as well as to agriculture and construction," he said in an email.