Blitz Bureau
NEW DELHI: A jump in the cost of gasoline and groceries pushed the consumer price index (CPI), showing the rate prices rose by in the past 12 months, to 3.8%. It is the highest level since inflation hit 4% three years ago.
The Bureau of Labor Statistics (BLS) said almost half of the rise was driven by surging energy costs, while housing and food costs also contributed.
The US-Israel war in Iran, and the resulting effective closure of the key Strait of Hormuz shipping lane, has led to a jump in oil prices and this has caused a surge in the price of gas in the US.
The national average price for a gallon of unleaded is at its highest level since July 2022, at $4.50, according to data from the AAA motoring group. Trump on May 12 described the increase as “short-term” and said Americans would understand his priority, keeping Iran from developing a nuclear weapon.
He also said inflation was less than during his predecessor Joe Biden’s term. Air fares and clothing also increased, while the price of new cars fell slightly.
The closure of the Strait of Hormuz has caused the price of jet fuel to spike, with US airlines, who do not currently hedge their fuel costs, quickly passing on increases to customers. The average airfare rose by 20.7 per cent in April, the latest figures showed.
Pay packets lagging
April’s inflation figure also marked the first time in three years that Americans’ pay packets are no longer growing faster than prices are rising. While prices rose by 3.8 per cent for the year to April, average paychecks grew by just 3.6 per cent.. As a result the US stock markets opened lower this week.
