April CPI rose 0.6% month-over-month, pushing annual inflation to 3.8%, above expectations and dimming rate cut prospects.
US consumer prices climbed 0.6% in April, lifting the annual inflation rate to 3.8%, the highest since May 2023. Core CPI, excluding food and energy, rose 0.4% monthly and 2.8% annually, exceeding consensus estimates of 2.7%. The data underscores persistent inflationary pressures, complicating the Federal Reserve’s policy path.
Energy costs surged 17.9% year-over-year, the steepest increase since September 2022, driven by a 28.4% rise in gasoline and a 54.3% jump in fuel oil. Real average hourly wages fell 0.5% for the month and 0.3% annually, signaling stagflation risks as nominal pay gains fail to keep pace with inflation.
Markets initially sold off on the report but quickly recovered, with BTC rebounding to $80.6k and equities stabilizing. The resilience suggests investors may be pricing in a prolonged higher-rate environment.