The U.S. inflation accelerated in April, with consumer prices rising 3.8% annually, marking the highest inflation rate since May 2023, according to data released by the Bureau of Labor Statistics.
The report said the Consumer Price Index increased 0.6% for the month, while core inflation, which excludes food and energy, remained elevated at 2.8% annually. Rising energy costs were a major driver, with gasoline prices surging 28.4% from a year earlier amid continued instability tied to the Iran conflict.
Consumer prices rose 3.8% annually in April, the highest since May 2023 https://t.co/kf3UNZsTgt
— CNBC International (@CNBCi) May 12, 2026
Shelter, airline fares, apparel, and household goods also posted noticeable increases, adding to broader inflation pressures across the economy. Real wages declined during the month, according to the report, increasing concerns about financial strain on middle-class households.
Financial markets reacted cautiously, with traders raising expectations that the Federal Reserve could keep interest rates higher for longer or potentially consider future rate hikes if inflation continues climbing.
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