US annual inflation reaches three-year high in April
US consumer prices rose 3.8% annually in April as energy and food costs increased. The data suggests interest rates will likely remain steady through next year.
The United States consumer price index rose 3.8% year-on-year in April, the largest annual increase in three years. This reading follows a 3.3% gain in March and exceeds the 3.6% wage growth recorded during the same period. Persistent price pressure strengthens expectations that the Federal Reserve will maintain interest rates between 3.50% and 3.75% into 2027.
### Energy Costs Drive Broad Inflationary Pressure Energy prices rose 3.8% in April, accounting for more than 40% of the total CPI increase. This surge followed a 10.9% jump in March as the conflict between Israel and Iran disrupted global fuel supplies. Gasoline prices climbed 5.4% last month, while diesel and other motor fuels increased 17.0%.
