US consumer prices rose sharply due to the Iran war, with the consumer price index increasing by 3.8% from April 2025. Petrol prices surged by over 28% compared to last year, leading to a financial squeeze for middle-class and lower-income households. Inflation is affecting wage gains, with average hourly wages dropping for the first time in three years. The Fed is cautious about interest rate cuts amid the ongoing conflict and rising energy prices, while companies like Whirlpool report significant revenue declines.