Consumer prices rose 3.8% in April, highest annual rate since May 2023
The Story
Consumer prices rose 0.6% in April, pushing the annual inflation rate to 3.8%, the highest since May 2023, according to the Bureau of Labor Statistics. Core CPI excluding food and energy increased 0.4% monthly and 2.8% annually, remaining above the Federal Reserve’s 2% target. Energy prices, up 3.8% monthly, accounted for over 40% of the headline gain, while real average hourly wages fell 0.5% for the month.
Key Facts
- Headline CPI rose 0.6% seasonally adjusted in April, putting the annual pace at 3.8%, the highest since May 2023.
- Core CPI (excluding food and energy) rose 0.4% monthly and 2.8% annually.
- Energy prices jumped 3.8% monthly and 17.9% annually; the gasoline index increased 28.4% annually.
- Food prices rose 0.5% monthly; food at home prices increased 0.7%, the biggest monthly gain since August 2022.
- Shelter costs rose 0.6% after easing in prior months.
- Real average hourly wages slipped 0.5% for the month and fell 0.3% annually.
- The Federal Reserve kept its benchmark interest rate steady at its late April meeting, with four dissents.
- Traders raised the odds of a Fed rate hike by the end of the year to about 30%, according to CME Group data.
Conflicting Reports
No conflicting reports identified in the source article.
Still Unclear
No open questions identified in the source article.
Misconceptions
No widespread misconceptions addressed in the source article.
Key Figures
- Heather Long, chief economist at Navy Federal Credit Union
- Chris Zaccarelli, chief investment officer at Northlight Asset Management
- James McCann, senior economist for investment strategy
- Fed Governor Stephen Miran
- Incoming Fed Chair Kevin Warsh
Sources
- CNBC — Primary Source (single-source story)
