John Carney 12 May 2026
Consumer prices rose sharply in April, driven by rising energy prices and increases in prices for housing, furniture, airfare, and clothing.
The consumer price index rose 0.6 percent in April, the Department of Labor said Tuesday. Compared with a year ago, prices are up 3.8 percent. This matched expectations.
Core prices, a measure that excludes volatile food and energy prices, rose 0.4 percent compared with the previous month. For the year, core prices are up 2.8 percent. That compares with expectations of 0.3 percent for the month and 2.7 percent for the year.
The month-to-month increase showed inflation slowing from the jump in March, when the oil price shock first hit following the launch of the war with Iran. The previous month saw the CPI rise 0.9 percent, for a year-over-year increase of 3.3 percent. Core prices climbed 0.2 percent in March and were up 2.6 percent from a year ago.
The Federal Reserve targets two percent annual inflation but uses a different gauge, the personal consumption expenditure price index compiled by the Department of Commerce, as its preferred measure of consumer prices. In recent months, the annual pace of PCE inflation has run slightly above the better-known consumer price index published by the Labor Department.
Energy prices drove the increase in the headline figure, rising 3.8 percent in the month and accounting for over 40 percent of the overall rise, according to the Labor Department. These have been rising rapidly since the start of the U.S. war with Iran and the closure of the Strait of Hormuz. Despite peace negotiations and a cease-fire, oil prices have remained high, and gasoline prices continue to rise. Brent crude, the global benchmark for oil, was recently trading at $107 a barrel, up from $62 in mid-February. The national average for gasoline hit $4.50 a gallon yesterday, up from $2.92 in mid-February.
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https://www.breitbart.com/economy/2026/05/12/consumer-prices-rose-in-april/
