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