The Labor Department’s consumer price index rose 3.8% from April 2025, according to data released Tuesday. On a month-to-month basis, April prices rose 0.6% from March as gasoline prices rose 5.4% during the month; the month-over-month gain was down from 0.9% increase from February to March.

Labor Department figures showed that gasoline prices are up more than 28% compared to a year ago. AAA says the average gallon of gasoline costs motorists more than $4.50 a gallon, about 44% more than it cost last year at this time.

Excluding volatile food and energy costs, so-called consumer core prices rose 0.4% last month from March and 2.8% from April 2025, relatively modest readings that suggest the energy price burst isn’t spilling over much yet into other prices.

Grocery prices rose 0.7% from March to April, as meat prices rose, after falling slightly the month before.

Inflation had been dropping more or less steadily since peaking with a 9.1% year-over-year spike in prices in June 2022, a surge caused by supply chain bottlenecks at the end of COVID-19 lockdowns and an energy price shock following the Russian invasion of Ukraine. But inflation remained above the Federal Reserve’s 2% target.

Then, the United States and Israel attacked Iran on Feb. 28, and Tehran responded by shutting off access to the Gulf of Hormuz, through which a fifth of the world’s oil and liquefied natural gas passes. Energy prices rocketed in response.

The Fed, which had been expected to cut its benchmark interest rates in 2026, has turned cautious as it waits to see how long conflict lasts and whether higher energy prices spill over into other products and cause a broader inflationary outbreak.

President Donald Trump has lambasted the Fed and its outgoing chair, Jerome Powell, for refusing to slash rates to boost the economy. Kevin Warsh, the president’s hand-picked choice to succeed Powell, is expected to be confirmed by the Senate this week; but it’s unclear whether Warsh would pursue lower rates given the uncertainties arising from the war — or whether he could persuade his colleagues on the Fed’s rate-setting committee to go along if he tried.

Americans are getting squeezed by gasoline prices that have shot past $4.50 a gallon. Some companies are also starting to feel the pain. For example, Whirlpool, which makes KitchenAid and Maytag appliances, reported last week that revenue dropped nearly 10% in its most recent quarter and said that the war has caused a “recession-level industry decline″ that has undermined consumer confidence.

There’s a reason financial experts often encourage retirees to delay claiming Social Security if they can afford to wait. Waiting to file for benefits could boost your monthly checks for life.

You can claim Social Security at any age once you turn 62. If you wait until full retirement age, which is 67 if you were born in 1960 or later, you’ll get your monthly benefits without a reduction.

However, if you delay Social Security past full retirement age, your benefits get boosted 8% for every year you wait, until you turn 70. That boost then stays in effect for the rest of your life.

But a larger monthly check isn’t the only upside of waiting. There’s another key perk that many retirees overlook.

Bigger Social Security checks lead to larger COLAs

Each year, Social Security benefits are eligible for a cost-of-living adjustment, or COLA. The purpose of COLAs is to help benefits keep up with inflation.

But COLAs aren’t flat dollar amounts. Rather, they’re percentage-based. This year, for example, Social Security benefits rose 2.8%.

What this means is that the larger your monthly benefits are to begin with, the more valuable every single COLA that comes through should be for you. So if you delay Social Security, you can set yourself up with not just larger benefits, but larger raises from year to year.

For example, say you’re entitled to $2,000 a month in Social Security at 67. If you wait until age 70 to file for benefits, you’ll get $2,480 a month instead.

Now, let’s say there’s a 3% COLA the following year. For a $2,000 benefit, you’re looking at a $60 raise. For a $2,480 benefit, you’re looking at an extra $74.40.

That gap may not sound like much initially. But over time, larger COLAs could help your financial situation immensely.

Lock in that stronger inflation protection

The value of larger Social Security COLAs can become more evident during periods of rampant inflation. While current inflation levels aren’t dreadful, a few years back, they were huge.

Larger COLAs could give you more spending leeway during times when costs are rising rapidly. So it pays to consider this peripheral benefit of delaying your Social Security claim.

Of course, delaying Social Security isn’t right for everyone. If you have health issues that are likely to shorten your lifespan, an earlier claim could be a better financial choice. If you’re unable to work and need money, you may not be able to wait until 70 to sign up for Social Security.

But if you have the option to wait and it makes sense for your financial situation, the combination of larger monthly checks and bigger lifetime COLAs could give you a serious long-term advantage.