The surge in global energy prices triggered by the Iran war is expected to have driven US inflation in April to its highest level since 2023.
Figures published on Tuesday are expected to show a 3.8 per cent annual rise in consumer prices, according to economists polled by Bloomberg, up from 3.3 per cent in March. The core measure of inflation — stripping out volatile food and energy prices — is expected to have risen to 2.7 per cent, from 2.6 per cent previously.
Headline inflation is sensitive to energy costs and analysts therefore expect it to be affected by the steep rise in oil prices since the US and Israel began their war on Iran at the end of February. Traders and policymakers will be particularly focused on the core metric for signs of companies passing on rising costs to consumers.