Headline inflation climbed 3.8% annually in April, exceeding forecasts and dimming prospects for Federal Reserve rate reductions.
U.S. consumer prices rose 0.6% in April, pushing the annual inflation rate to 3.8%, the highest since May 2023. Core CPI, excluding food and energy, increased 0.4% monthly and 2.8% year-over-year, both above consensus estimates of 2.7%.
Real average hourly wages fell 0.5% for the month and 0.3% annually, highlighting stagflation concerns as nominal pay gains fail to offset rising costs. Energy prices surged 17.9% year-over-year, led by gasoline and fuel oil increases of 28.4% and 54.3%, respectively.
Despite the hotter-than-expected print, markets showed limited reaction, with Bitcoin stabilizing at $80.6k and equities rebounding after an initial dip.