Iran war cost US billions and fueled inflation, CBO finds

economy & finance armed conflict

President Donald Trump’s decision to go to war against Iran has cost US taxpayers approximately $38.1 billion through August 1. According to a new report from the nonpartisan Congressional Budget Office, the direct costs between February 28 and August 1 totaled about $38 billion, following an earlier estimate of $33.4 billion as of June 29.

The budget office estimates that the conflict will cost the United States an additional $2 billion to $3 billion for each month it continues.

Furthermore, the study finds that the war is the cause of more than one-third of the increase in inflation this year. These costs are expected to push inflation up about 0.5 percentage points by early next year, with further increases projected for the first quarter.

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