Inflation gauge rises to 3.8% in April, highest since May 2023
The Story
A key inflation gauge accelerated in April to the highest level in three years, according to the Commerce Department. Inflation jumped to 3.8% compared with a year ago, up from 3.5% in March, driven by spiking gas prices and higher food costs. Core inflation, excluding food and energy, rose to 3.3% from 3.2% the previous month.
Key Facts
- Inflation reached 3.8% in April, the highest since May 2023.
- On a monthly basis, prices rose 0.4%, down from 0.7% in March.
- Core inflation (excluding food and energy) rose to 3.3% in April from 3.2% in March.
- Core prices rose just 0.2% in April from March.
- Consumers’ incomes were unchanged in April from March; adjusted for inflation, incomes slipped 0.1%.
- Inflation remains above the Federal Reserve’s 2% target.
- The report indicates inflation could persist and pose problems for congressional Republicans in the midterm elections.
- Some Fed officials have signaled their next move could be a rate hike rather than a cut.
Conflicting Reports
No conflicting reports identified in the source article.
Still Unclear
Whether the Federal Reserve will cut, hold, or raise interest rates later this year; the article states only that some officials have signaled a possible hike.
Misconceptions
No widespread misconceptions addressed in the source article.
Key Figures
- Commerce Department (released the report)
- Federal Reserve (policymakers referenced)
- Congressional Republicans (mentioned as potentially impacted by inflation)
Sources: abcnews.com
