Economists Raise US Inflation Forecasts as Iran War Drags On

US households are dealing with gasoline prices that have been hovering around $4 a gallon on average,

Photographer: David Paul Morris/Bloomberg

Economists raised their estimates for US inflation and said they expect only one Federal Reserve interest-rate cut this year amid elevated energy costs sparked by the Iran war.

The personal consumption expenditures price index is now seen rising 3.6% in the second quarter from a year earlier, according to Bloomberg’s April survey of economists. That compares with the 3.3% estimate in the March survey.