Economy News

US inflation jumps to 3.8% in April, the highest since 2023, as gasoline tops $4.50

US consumer prices rose 3.8% in the year to April, up from 3.3% in March and the largest annual increase since May 2023, the Bureau of Labor Statistics reported on Tuesday 12 May. Prices rose 0.6% from March, after a 0.9% jump in March that was the biggest monthly rise since June 2022. Core inflation, which excludes food and energy, rose 0.4% on the month and 2.8% on the year.

Energy did most of the work. FOX 5 New York reports gasoline rose 5.4% from March and more than 28% from a year earlier, with the AAA national average above $4.50 a gallon, about 44% higher than a year ago. Food rose 0.5%, the most since December, and grocery prices 0.7%, led by meat.

How each outlet framed it

• Business Standard (Reuters) — the policy angle: the 0.6% monthly rise matched economists' consensus, part of the core increase came from a one-time rent adjustment tied to last year's government shutdown, and markets expect the Fed to keep rates at 3.50%–3.75% into 2027.
• FOX 5 New York — the household angle: fuel and groceries, prices rising “as the war with Iran continues”, and President Trump's suggestion that gas prices may stay high before the November midterms.

What we don't know yet: how far the energy shock will spread. Economists cited by Reuters expect second-round effects from energy costs to show up in the coming months, after oil rose above $100 a barrel in March and pushed up gasoline, diesel and jet fuel prices.