Congressional Budget Office: The war with Iran will raise US inflation by 0.5% in the first quarter of 2027

The US war against Iran, which began on February 28, has cost the country $38 billion so far, while the total cost is expected to reach $60 billion by the end of the year, according to the Congressional Budget Office (CBO).

According to the office’s assessment, most of the costs come from the rapid depletion of munitions, while replenishing missile and other weapons stockpiles could take years.

The war is expected to raise inflation by 0.5 percent in the first three months of 2027, the CBO says, driven partly by higher energy costs due to disruptions in oil shipments.

The war has depleted US ammunition stockpiles and raised energy prices, raising concerns about the conflict’s long-term economic impact.

Source: Al Jazeera