The annual inflation rate in the US likely accelerated to 3.7% in April 2026, marking the highest reading since September 2023, up from 3.3% in March. Inflation is expected to have risen for a second consecutive month as the oil shock triggered by the war with Iran continued to push prices higher. On a monthly basis, consumer prices are estimated to have increased by 0.6%, easing from the 0.9% rise recorded in March, which was the largest monthly gain since June 2022. The surge in inflation comes as the US national average gasoline price climbed nearly 50% since the war with Iran started, rising above $4 per gallon for the first time in more than three years. Meanwhile, core inflation is also expected to have edged higher, albeit at a more moderate pace, to 2.7% year-on-year, the highest level in six months, from 2.6% in March. On a monthly basis, core consumer prices likely increased by 0.3%, up from 0.2% in both February and March.