Inflation surged to 3.8% in April, its highest level in nearly three years, according to new data, in the clearest sign yet of the Iran war's wide-ranging economic impact.

The inflation rate means that prices are now rising faster than wages, which could exacerbate the affordability crisis that has already been gripping consumers. As of Tuesday morning, the price of oil had risen more than 70% since the start of the year and the average price of a gallon of gas was $4.50.