The U.S. Bureau of Labor Statistics reported on May 13, 2026, that the Consumer Price Index (CPI) rose 3.4% year-over-year in April, the largest annual increase since 2023. The rise was driven by higher costs for energy, housing, and food, with energy prices up 8.2% from a year ago.
Core inflation, which excludes volatile food and energy prices, increased 2.8% annually, slightly above the Federal Reserve's 2% target. On a monthly basis, the CPI rose 0.3% in April, matching March's gain.
Economists noted that persistent inflation in services and shelter costs remains a concern. The data may influence the Federal Reserve's next interest rate decision, with markets now pricing in a potential rate hold at the June meeting.
