Headline CPI climbed to 3.8% year-over-year in April, driven by energy costs and broader core price increases, keeping the Fed on hold.
US consumer prices rose 3.8% year-over-year in April, up from 3.3% in March, matching expectations but signaling persistent inflationary pressures. The monthly gain of 0.6% was fueled by higher gasoline and food prices, while core CPI, excluding food and energy, increased 0.4% month-over-month, above the 0.3% forecast.
Core inflation’s annual pace held at 2.8%, but rising shelter costs, airfares, and tariff-exposed categories like apparel contributed to the upside. Analysts note the data reflects early spillover from oil price shocks into broader inflation, with further increases likely in May.
Markets continue to price in no Federal Reserve rate cuts until at least year-end, as policymakers await sustained evidence of cooling price pressures.