US April Inflation Soars to 3.8%... Direct Hit from Iran War Energy Price Surge

(Seoul=News) The surge in international oil prices caused by the Iran war is pushing up US consumer prices, reigniting inflation concerns.

According to the UK's BBC and other sources on the 12th (local time), the US Consumer Price Index (CPI) rose 3.8% year-on-year in April, marking the highest level in approximately three years since May 2023. The figure exceeded the market forecast of 3.5%.

The key driver of the price surge is energy costs. As crude oil shipments through the Strait of Hormuz have been disrupted due to military conflict with Iran, international oil prices have soared nearly 30% over the past month. The average gasoline price in the US has also risen to the upper $4 range per gallon, increasing the burden on households.

Rising energy prices are also affecting food and manufactured goods prices overall through transportation costs. Food prices rose 4.2% year-on-year, while transportation service costs increased 5.9%.

The renewed rise in prices is expected to impact the Federal Reserve's monetary policy as well. As the possibility emerged that the Fed may reconsider its rate-cut stance pursued this year, the New York stock market showed weakness on the day, while 10-year Treasury yields trended upward.

Experts warned that if the Iran situation prolongs, US inflation could re-enter the 4% range. Analysts say that countries highly dependent on energy imports, such as South Korea, should also prepare for potential deterioration in prices and trade balances.