Inflation rises to 3.8%, driven by energy prices

Uncertainty over the global oil supply after U.S. strikes in Iran, leaving the Strait of Hormuz in limbo, is driving higher energy prices. The popular oil tanker passageway has brought gas prices soaring throughout the world and across the United States. 

Heather Long, chief economist at Navy Federal, said inflation is the worst in three years. 

"This is painful for Americans, especially moderate-income households," Long said. 

Prices for food rose by 0.5% throughout the month of April. The index for all items excluding food and energy also rose by 0.4% in April. 

The only areas that did not see an increase were new vehicles, communication and medical care. Long pointed out that inflation has now outpaced wage growth for the first time in three years, according to the reports.

Wages grew 3.6% in the last year, lower than April's 3.8% inflation total. In March, the inflation index was 3.3%, reflecting the first data points after the conflict with Iran. Experts pointed out that April's data does not account for the hike in gas prices over the past two weeks. 

Over the past year, energy prices have increased by 17.9%. Food prices, by comparison, increased by 3.2% over the past year. 

"This is painful for Americans and true financial squeeze," Long said. 

Chris Zaccarelli, chief investment officer at Northlight Asset Management, said he does not expect the Federal Reserve to cut interest rates as inflation continues to rise. 

"It's possible that we may start pricing in rate hikes next year," Zaccarelli said.