Inflation rises 3.8% in April as holiday weekend costs climb
8 reported
According to a CNBC report citing federal data, U.S. inflation rose 3.8% in April from a year earlier, the highest annual rate since 2023, as the Iran War reignites price increases heading into Memorial Day weekend. Consumer sentiment hit its lowest level on record in May, per University of Michigan survey data released Friday, partly due to spiking oil prices amid the nearly three-month-old Middle East war. Prices for food, travel, and recreation saw sharp increases, with ground beef up 16%, gasoline up 28%, and airline fares up 20.7% year over year. A record 45 million Americans are expected to travel at least 50 miles from home, AAA anticipates, up 0.4% from last year’s peak. E.l.f. Beauty announced it was rolling back some price increases, citing consumer “suffering” from elevated fuel costs, while McDonald’s CEO Chris Kempczinski warned of a “challenging environment.” Spirit Airlines shuttered operations earlier this month, citing costlier jet fuel, and industry analysts said ticket prices could rise further without the budget carrier. The report is based on a single source, CNBC, and has not been independently verified.
What’s reported
Total inflation for shoppers rose 3.8% in April from the same month a year ago, the highest annual rate since 2023, per federal data.
Consumer sentiment hit its lowest level on record in May, according to University of Michigan survey data released Friday.
Ground beef and steaks are up as much as 16% compared with 2025; frankfurters cost nearly 11% more than a year ago.
Gasoline prices soared more than 28% year over year; the average price for a gallon of unleaded gas nationally was its highest in four years heading into the weekend, per AAA.
Airline fares surged 20.7% from April 2025 to 2026, reaching their highest level since 2022.
AAA anticipates 45 million Americans will travel at least 50 miles from home over the holiday period, up 0.4% from last year’s peak.
Spirit Airlines shuttered operations earlier this month, citing costlier jet fuel.
E.l.f. Beauty announced it was rolling back some price increases, saying consumers were “suffering” from elevated fuel costs.
Key figures
Stephen Juneau, senior U.S. economist at Bank of America
Chris Kempczinski, CEO of McDonald’s
Kimberly Palmer, personal finance expert at NerdWallet
E.l.f. Beauty (company)
Spirit Airlines (company)
AAA (organization)
University of Michigan (institution)
Sources: CNBC
