Inflation in the United States is expected to rise again as the Iran war drives up energy costs, according to forecasts reviewed by CBS News. The report said March inflation could reach 3.3%, the highest since May 2024, with some economists warning it may cross 4% in April.
Analysts at Oxford Economics said rising fuel prices are the main driver, with Pantheon Economics noting the sharpest monthly increase in fuel costs in decades. They added higher energy prices are likely to push up costs across sectors, including food and travel.
The war in Iran will likely exacerbate inflation around the world, writes Henry Tugendhat. And if U.S. interest rates rise as a result, developing countries’ debt will become more expensive to repay—and a new debt crisis may unfold. https://t.co/qnkV777OCF
— Foreign Affairs (@ForeignAffairs) April 9, 2026
Economists told CBS News that the impact will persist despite the temporary ceasefire, as oil prices remain significantly above pre-war levels. According to Moody’s Analytics, consumers may face higher grocery and airline costs in the coming months.
Rising prices could strain household budgets and slow spending, a key driver of the U.S. economy. Federal Reserve officials may delay rate cuts as inflation pressures intensify.
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