April CPI rises 3.8% year‑on‑year — biggest annual uptick in a year

The U.S. Bureau of Labor Statistics said on May 12 that consumer prices rose 3.8% in April from a year earlier, the fastest annual pace since May 2023. The consumer price index increased 0.6% on a seasonally adjusted basis in the month, after a 0.9% rise in March, according to the agency. The report showed inflation broadening beyond fuel, with shelter up 0.6% in April and food up 0.5%. Core CPI, which excludes food and energy, rose 0.4% in the month and 2.8% from a year earlier. ### Which parts of the April report drove the increase? Energy prices rose 3.8% in April and accounted for more than 40% of the monthly increase in the all-items index, the Bureau of Labor Statistics said. The energy index was up 17.9% from a year earlier, with gasoline prices up 28.4% on the same basis. Food prices increased 0.5% in April, including a 0.7% rise in food at home. (bls.gov) Shelter costs also increased 0.6% in April, the agency said. Other categories that rose during the month included household furnishings and operations, airline fares, personal care, apparel and education, while new vehicles, communication and medical care were among the major indexes that fell. ### How much of the inflation pressure sat outside energy? (bls.gov) Core CPI rose 0.4% in April and 2.8% over the prior 12 months, up from 2.6% in March, the Bureau of Labor Statistics said. The monthly core reading matched the highest since January 2025, CNBC reported, citing the government data. Apparel prices rose 0.6% in April and were up 4.2% from a year earlier, according to the CPI tables. (bls.gov) Airline fares also increased during the month, and household furnishings and operations moved higher. ### What did the report say about household purchasing power? CNBC reported that real average hourly wages fell 0.5% in April and were down 0.3% from a year earlier. (bls.gov) That followed the CPI release showing consumer prices rose faster than the Federal Reserve's 2% inflation goal. The Bureau of Labor Statistics report did not include market reaction in the release itself. (bls.gov) It did show that price increases were spread across energy, shelter and food, alongside gains in several service and goods categories. ### When will the Federal Reserve next weigh the inflation data? The Federal Reserve's calendar shows the next Federal Open Market Committee meeting is scheduled for June 16-17. (cnbc.com) The Board's June 2026 calendar lists the policy decision at 2 p.m. and Chair Jerome Powell's press conference at 2:30 p.m. on June 17. (bls.gov) The Federal Reserve says the FOMC holds eight regularly scheduled meetings each year and publishes links to policy statements and minutes on its calendar page. Minutes of regularly scheduled meetings are released three weeks after the policy decision, according to the central bank. June 17 is the next scheduled date for a Fed policy statement and press conference, according to the Board's calendar. (federalreserve.gov) The next monthly CPI release after the April report will appear on the Bureau of Labor Statistics' inflation schedule page and news release archive. (federalreserve.gov)