US Inflation Accelerates for Second Straight Month as Gas Costs Drive April CPI

"The BLS reported April 2026 headline CPI at 3.8% year-over-year, beating the 3.7% consensus estimate. Energy prices jumped 17.9% annually, driven by the U.S.-Iran conflict, pushing gasoline up 28.4% YoY. The Federal Reserve now faces pressure to delay rate cuts into late 2026 or 2027 as core CPI hits 2.8%."

"The monthly CPI-U rose 0.6% on a seasonally adjusted basis in April, following a 0.9% increase the prior month. The all-items index reached 333.020 on the 1982-84 base scale, up 0.9% from March on an unadjusted basis. Core inflation, which strips out food and energy, came in at 2.8% year-over-year, up from 2.6% in March. Month-over-month, core CPI rose 0.4%, edging past the 0.3% expectation."

"Energy prices led the acceleration. The energy index climbed 17.9% over the past 12 months and added 3.8% in April alone on a seasonally adjusted basis, accounting for more than 40% of the total monthly increase. Gasoline prices rose 28.4% year-over-year, and fuel oil jumped 54.3% over the same period. BLS data and analyst commentary point to the ongoing U.S.-Iran conflict and oil supply disruptions as the primary drivers."

"Food prices increased 0.5% month-over-month and 3.2% year-over-year. Food at home rose 2.9% annually, while food away from home climbed 3.6%. Meats, poultry, fish, and eggs moved up 1.3% in April. Fruits and vegetables gained 1.8% for the month. Shelter costs increased 0.6% in April and are up 3.3% year-over-year, continuing to press on core inflation."

April 2026 CPI-U increased to 3.8% year-over-year, above a 3.7% consensus estimate and higher than 3.3% in March. The monthly CPI-U rose 0.6% on a seasonally adjusted basis after a 0.9% prior-month increase. Core CPI, excluding food and energy, reached 2.8% year-over-year, up from 2.6% in March, and rose 0.4% month-over-month versus a 0.3% expectation. Energy prices climbed 17.9% annually, with gasoline up 28.4% year-over-year and fuel oil up 54.3%. Energy accounted for more than 40% of the total monthly increase. Shelter costs rose 0.6% in April and 3.3% year-over-year, continuing pressure on core inflation.

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