US July inflation stays high as energy prices rise

Inflation in the United States has accelerated in the weeks following a coordinated military strike by the United States and Israel against Iranian targets, analysts said. The operation, which began on March 15, prompted a sharp rise in global energy prices as concerns over supply disruptions intensified. By the end of the month, the U.S. Consumer Price Index (CPI) had risen 0.6% month‑over‑month, pushing the annual inflation rate to 4.2%, the highest level in over two years.

Energy commodities led the price surge, with crude oil futures climbing more than 12% since the attacks and gasoline prices increasing by an average of 8 cents per gallon nationwide. The spike reflects market expectations of reduced Iranian oil exports and heightened geopolitical risk, prompting the Federal Reserve to signal a possible acceleration of its tightening cycle. Economists caution that sustained higher energy costs could keep overall inflation elevated, even as other categories such as food and housing show modest moderation.