CPI Report: Annual Inflation Rate Comes In At 3.8% In April, Highest Since 2023

• Core CPI, which excludes food and energy, rose 0.4% in April, above Wall Street expectations.
• Soaring energy costs drove the rise in headline inflation, with the energy index rising 3.8% in April.
• For the 12 months ending April, the gasoline index surged 28.4%, the BLS report stated.

U.S. consumer prices rose in line with expectations in April, according to the Consumer Price Index (CPI) report released on Tuesday.

According to data from the Bureau of Labor Statistics (BLS), on a seasonally adjusted basis, CPI rose 0.6% in April, after rising 0.9% in March.

This pushed the annual inflation rate to 3.8% before seasonal adjustment, driven by higher energy prices and marking the highest level since May 2023.

Core CPI, which excludes food and energy, showed a 0.4% increase in April, higher than a Dow Jones estimate of 0.3%, according to MarketWatch data.

On an annual basis, the core CPI stood at 2.8%, above Wall Street expectations. The headline and core inflation are still above the Federal Reserve’s long-term target of 2%.

Source: Bureau of Labor Statistics, U.S. Department of Labor

Energy Costs Soar

Soaring energy costs drove the rise in headline inflation, with the energy index rising 3.8% in April and accounting for over 40% of the total increase in consumer inflation during the month.

For the 12 months ending April, the gasoline index surged 28.4%, the BLS report stated.

According to AAA data, gasoline prices have soared by more than 8% over the past month.

Food Costs Inch Up, Airline Fares Rise

The BLS report also stated that food costs inched up by 0.5% during April, while the shelter index rose 0.6%.

Airline fares, household furnishings, education, and apparel prices increased in April. However, medical care, new vehicles, and communication service prices declined during the month, the report stated.

Meanwhile, U.S. equities were mixed in Tuesday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, declined 0.26%; the Invesco QQQ Trust ETF (QQQ) fell 0.68%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) inched up by 0.02%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down 0.11% at the time of writing.

Also See: QBTS Stock Gets A Thumbs Down From Investors After 81% Revenue Decline – But Bookings Soar By A Whopping 1994%

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