A new government report shows that inflation has risen 3.5% compared to last year, the highest increase in nearly three years, driven by rising gas prices linked to the Iran War. The price of gasoline is expected to remain high through mid-November, with the national average for regular gas at $4.30 per gallon, a 27-cent increase from last week. Oil prices also spiked to a four-year high overnight amid reports that President Donald Trump is considering bombing Iran again. The Federal Reserve has stated it will not cut interest rates due to the higher gas prices, meaning borrowing costs for things like credit cards and mortgages will remain expensive. Despite settling slightly since then, oil prices remain at wartime highs. A new GDP report also showed that the economy grew 2% in the first quarter of 2026.