US war with Iran costs $38 billion, inflation outlook rises

The Congressional Budget Office (CBO) reported that the Trump administration spent approximately $38 billion in the first five months of the war with Iran. The CBO projects that the conflict will increase US inflation, with indicators expected to be 0.5 percentage points higher by early 2027 than previously forecast. Additionally, replenishing ammunition stockpiles could take over five years, potentially impacting the US ability to respond to other conflicts.