Iran war drives US inflation

The Labor Department report highlights the severe economic toll of the ongoing Middle East war on American households.

While 'core' inflation remained relatively stable, the volatility in energy and food prices has significantly diminished the likelihood of interest rate cuts by the Federal Reserve this year.

Treasury Secretary Scott Bessent noted that over 30 million Americans have utilized tax breaks on tips and overtime to mitigate rising costs.

However, analysts warn that persistent high fuel prices are eroding wage gains and dampening consumer sentiment to record lows.