U.S. consumer prices rose 3.8% over the 12 months ending in April, the Bureau of Labor Statistics reported Tuesday — the fastest annual pace since May 2023, according to Bloomberg.
The Consumer Price Index for All Urban Consumers climbed 0.6% on a seasonally adjusted basis in April, following a 0.9% increase in March. More than 40% of April’s total monthly price increase was driven by a 3.8% rise in the energy index. Gasoline prices climbed 5.4% in April on a seasonally adjusted basis, and are up 28.4% over the past 12 months. Energy overall has risen 17.9% over the same period.
Food prices increased 0.5% in April. The index for food at home rose 0.7%, led by a 1.8% gain in fruits and vegetables and a 1.3% increase in meats, poultry, fish, and eggs. The food away from home index rose 0.2%.
The index for all items less food and energy — known as core CPI — rose 0.4% for the month and 2.8% over the past year. According to Bloomberg, a 2.8% annual core reading has not been recorded since September. Shelter costs rose 0.6% in April and are up 3.3% over the past 12 months. Airline fares climbed 2.8% over the month and are up 20.7% over the past year.
Among categories that declined in April, new vehicles fell 0.2%, communication fell 0.2%, and medical care dropped 0.1%.
The headline annual inflation rate accelerated from 3.3% for the 12 months ending in March. Core inflation similarly picked up, rising from 2.6% over the prior 12-month period.
The Iran war has been a central driver of rising energy costs since the conflict began. Before officials gather for the June 16-17 Fed meeting to weigh interest rate decisions, they will have an additional data point in hand: the May CPI report, according to Bloomberg.
The Consumer Price Index for May 2026 is scheduled for release on Wednesday, June 10.