The first inflation report released since Kevin Warsh was sworn in as Fed chair suggests the central bank's largest challenge may be rising prices.

Inflation jumped for a second consecutive month in April as the Iran war drove up gasoline prices and strained household budgets, government data on Thursday showed. Prices rose 3.8% in April compared to a year earlier,

The personal consumption expenditures price index, the Federal Reserve's preferred gauge of inflation, jumped due to higher energy costs.

Core inflation at its highest in nearly 3 years as Fed considers rate hikes

The main inflation barometer preferred by Federal Reserve rose to a three-year high in April and it could rise even higher, posing a stiff challenge for households, businesses and the broader U.S. economy.

High gas prices pushed up inflation again last month while adding to Americans’ financial strain: Households are saving at the lowest rate in nearly four years, a new report showed Thursday.

The PCE price index for April was expected to show an annual inflation rate of 3.8% for all items and 3.3% for core.