Inflation was elevated last month even before the Iran war sent energy costs soaring - AP News

Inflation remained elevated last month before the Iran conflict triggered a surge in energy costs, according to new economic data. The pricing pressures preceded the recent military escalation that has driven oil and gas prices higher, suggesting underlying inflationary forces were already building in the economy. This creates a challenging scenario where the Federal Reserve must contend with both persistent inflation and new geopolitical shocks that could further accelerate price increases. The timing complicates monetary policy decisions, as policymakers now face dual pressures from domestic economic conditions and international energy market volatility. Consumers are likely to experience continued high prices across multiple sectors, with energy costs adding to already elevated inflation rates.