Inflation rose to 3.8% year over year in April, driven largely by a surge in energy prices tied to the U.S.–Israeli conflict with Iran, according to new data from the Bureau of Labor Statistics. The jump has renewed concerns among economists that inflation may remain elevated and could complicate the Federal Reserve’s path on interest rates.

Energy Prices Drive The Spike

The Bureau of Labor Statistics says energy prices rose 17.9% year over year and accounted for more than 40% of the total inflation increase. Energy commodities grew 29.2%. Gasoline rose 28.4%, and fuel oil jumped 54.3%. Electricity increased 6.1%, although that figure understates the true cost because it excludes delivery-charge increases, which remain significant.

On a month-over-month basis, energy rose 3.8%. Energy commodities increased 5.6%, with gasoline up 5.4% and fuel oil up 5.8%. Electricity rose 2.1% from March.

Broader Categories Keep Climbing

Month over month, food prices rose 0.5%. Food at home increased 0.7%, and food away from home rose 0.2%.........

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