Consumers caught in triple stack of pain
https://www.axios.com/2026/03/28/iran-war-inflation-costs

Illustration: Sarah Grillo/Axios. Stock: Getty Images
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Illustration: Sarah Grillo/Axios. Stock: Getty Images
Americans desperately want day-to-day life to be more affordable. Right now, they aren't getting it.
The big picture: The pinch of high prices for food, energy, housing and more has driven seismic shifts in public opinion over the last four years. Since the onset of the Iran war, the cost of living looks likely to get worse, not better, at least in the near term.
By the numbers: The national average for a gallon of gasoline is poised to surpass $4, up from about $3 a month ago — and is set to rise further the longer the Strait of Hormuz remains blocked.
Of note: The impact of higher gasoline prices alone may roughly offset higher anticipated tax refunds due to last year's One Big, Beautiful Bill Act, per analysis from Stanford economists.
Driving the news: The Organisation for Economic Co-operation and Development this week projected U.S. inflation will reach 4.2% this year. Before the war, the international research and policy group had projected 3% U.S. inflation.
State of play: Prospects of higher inflation and higher government borrowing have fueled sell-offs in stocks and bonds that are simultaneously depleting household wealth and making it more costly to borrow money to buy a home.
What they're saying: "Consumers are tired of high prices," Richmond Fed president Tom Barkin said in a speech Friday. "They're deferring purchases, trading down and moving down to lower-priced retailers and private label."
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