According to the Bureau of Labor Statistics on Tuesday, the consumer price index increased by a seasonally adjusted 0.6% for the month, resulting in a one-year rate of 3.8%.
The annual headline inflation rate was the highest since May 2023 and was up half a percentage point from March. Core inflation rose 0.2 percentage point annually.
Excluding food and energy, core CPI increased 0.4% and 2.8% respectively.
Energy prices jumped 3.8%, with a 12-month increase of 17.9%, while food rose 3.2%. The gasoline index went up 28.4% annually.
Shelter costs increased by 0.6%, the tariff-sensitive apparel category also rose 0.6%, and airline fares sped up by 2.8%, pushing the 12-month increase to 20.7%. Tariffs impacted household furnishings and operations, climbing 0.7%.
The report also brought bad news for workers, as real average hourly wages declined by 0.5% for the month and dropped 0.3% year over year.
Following the report, markets widely anticipate the Fed to maintain its current stance on rate cuts throughout the year.
By CEO NA Editorial Staff
