US Inflation Hits 3.8%, Highest Since May 2023

WASHINGTON, KOMPAS.com - The US Consumer Price Index (CPI) reached 3.8% year-on-year in April 2026. This figure, used to measure the inflation rate, is the highest since May 2023. Prices paid by consumers for various goods and services increased faster than expected in April. This was caused by a surge in energy prices, raising further concerns about the impact of inflation on the US economy. The monthly rate rose in line with expectations, but the annual rate was 0.1 percentage points higher than the Dow Jones consensus. Excluding food and energy, core CPI increased by 0.4% monthly and 2.8% annually. This means inflation remains well above the Federal Reserve’s 2% target, as the monthly rate is the highest since January 2025. Notably, Fed officials consider core CPI a better indicator for long-term inflation trends. The main annual inflation rate is the highest since May 2023 and rose by half a percentage point from March. Core inflation rose by 0.2 percentage points annually. Energy prices, which surged 3.8%, contributed more than 40% to the overall inflation increase, while food prices also rose 0.5%. For energy, this brings the 12-month increase to 17.9%, while food prices rose 3.2%. The petrol index increased 28.4% year-on-year. Grocery prices rose 0.7%, the largest monthly increase since August 2022.