The annual inflation rate in the US rose to 3.8% in April 2026, the highest level since May 2023 and up from 3.3% in March. The reading came in above market expectations of 3.7%, as the oil shock triggered by the war with Iran continued to put upward pressure on prices.
Energy costs surged 17.9% year-on-year, accelerating sharply from 12.5% in March, driven mainly by gasoline prices (28.4% vs. 18.9%) and fuel oil (54.3%). Inflation also picked up for shelter (3.3% vs. 3.0%), while food prices rose 2.3%, compared with 2.7% in March.
On a monthly basis, the CPI increased 0.6% in April, slowing from a 0.9% gain in March—which had been the largest monthly rise since June 2022—and matching forecasts.
Core inflation also moved higher, though more moderately, edging up to 2.8% year-on-year, the highest since September, from 2.6% in March and above the expected 2.7%. Month-over-month, core consumer prices advanced 0.4%, after rising 0.2% in both February and March and exceeding projections of a 0.3% increase.
