WSJ What’s News Gasoline Prices Drive Inflation to Highest Level in Two Years
10 snips
Apr 10, 2026 
Konrad Putzier, a WSJ economics reporter on housing and inflation, breaks down how surging gas and heating costs are driving prices higher and complicating the Fed’s next move. Laurence Norman, a WSJ reporter on diplomacy and national security, digs into the high-stakes U.S.-Iran talks, from Tehran’s leverage to the chances of a temporary ceasefire-style deal.
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Energy Shock Pushes Inflation Back Up
- Inflation jumped to 3.3% largely because the Iran war pushed up gasoline and heating-oil prices, reversing hopes that living costs were easing.
- Konrad Putzier says energy can spread into food and services through fertilizer, diesel trucking, and transport costs before showing up fully in CPI.
Inflation Has Wiped Out Typical Wage Gains
- Higher prices have effectively erased typical wage gains over the past year, leaving many Americans no better off unless they own stocks.
- Putzier notes rents and food were still relatively mild, so lower-income households avoided the worst of the March inflation surge.
Energy Inflation Could Still Push The Fed To Cut
- A prolonged energy spike could leave the Fed facing both hotter inflation and weaker consumer spending at the same time.
- Economists told Konrad Putzier that if the shock drags on, rate cuts could become more necessary to support growth despite rising prices.