U.S. consumer prices climbed a sharply again last month as the 10-week war with Iran pushed energy prices higher. The Labor Department reported Tuesday that its consumer price index rose 3.8% from April 2025. On a month-to-month basis, April prices were up 0.6% from March as gasoline prices rose 5.4%. Excluding volatile food and energy costs, so-called consumer core prices were up 0.4% last month from March and 2.8% from April 2025, relatively modest readings that suggest the energy price burst isn't yet spilling over much into other prices.

President Donald Trump's deals with drugmakers requiring many of their U.S. prescription prices to drop could save the economy $529 billion over the next decade. That's according to the first analysis from the White House Council of Economic Advisers of what's known as the "most favored nation" policy. Democrats have said they want more details about the agreements made between drugmakers and the government. Trump says his prescription drug pricing plan is critical for Republicans in the November midterm elections, which will decide majorities in the House and Senate. The new analysis, obtained by The Associated Press, comes as voters express concern about higher energy prices tied to the Iran war.