Recent economic reports indicate a significant rise in inflation rates, with the key inflation gauge reaching its highest level in nearly three years. The conflict in Iran has resulted in surging gas prices, contributing to a core inflation rate of 3.2% in March and a year-on-year increase in personal consumption expenditures (PCE) inflation to 3.5%. Economists are wary of the prolonged impact of the Iran war, leading to revised inflation forecasts and concerns regarding the stability of economic growth. Meanwhile, GDP growth remained steady at 2% in the first quarter, but the overall economic outlook remains uncertain as inflation continues to be a pressing issue.