U.S. inflation quickens as energy, food prices rise

Summary

U.S. inflation accelerated in April as energy and food prices rose, with annual CPI reaching 3.8%, the highest since May 2023.

Why this matters

The report showed price pressures intensified in April, driven largely by energy and food, which affects household budgets and borrowing costs. It also may shape expectations for Federal Reserve interest-rate decisions and the broader economic outlook.

U.S. consumer prices rose for a second straight month in April, led by higher energy and food costs, according to a Labor Department report released today.

The Consumer Price Index increased 0.6% in April after rising 0.9% in March, the Labor Department’s Bureau of Labor Statistics said.

In the 12 months through April, the CPI rose 3.8%, the largest year-over-year increase since May 2023, after a 3.3% gain in March.

A 3.8% increase in energy prices accounted for more than 40% of the monthly rise in CPI, following a 10.9% jump in March. Gasoline prices rose 5.4%, fuel oil increased 5.8%, and consumers also paid more for electricity.

Food prices rose 0.5% after being unchanged in March. Grocery prices increased 0.7%, including a 2.7% rise in beef prices. Fruit and vegetable prices rose 1.8%, nonalcoholic beverages increased 1.1%, and dairy and egg prices also posted strong gains.

Shelter costs rose 0.6% after a 0.3% increase in March. Household furnishings and operations prices rose 0.7%, and apparel and footwear prices also increased. Core CPI rose 2.8% from a year earlier after a 2.6% increase in March.

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