Inflation Surge Tied to War on Iran and Tariffs as Midterms Loom

The Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) index rose 3.6 % from a year earlier, up from 3.4 % the month before. Core PCE, which excludes food and energy, increased 3.1 % after a 3 % rise the previous month. At the same time, the national average price for a gallon of gasoline reached $4.23 and diesel $6.33. The University of Michigan’s Consumer Sentiment Index fell to 48, approaching its recent low of 44.8.

Common Dreams

The inflation rise is linked, according to Navy Federal Credit Union chief economist Heather Long, to President Donald Trump’s “illegal war on Iran” and a series of tariffs implemented since 2025.

Common Dreams

The Costs of War Project at Brown University estimates that U.S. residents have paid at least $81 billion in additional fuel costs. A Democratic Joint Economic Committee report adds that households have spent an extra $101 billion on gasoline since the conflict began, averaging $856 per family. Combining gas and diesel, the total extra expense reaches $147 billion—about $619 per household.

Common Dreams

• “Prices are skyrocketing—and small business owners are on the frontlines of Trump's war on Main Street,” — Sen. Ed Markey

Common Dreams