Story perspectives

April CPI Jumps 3.8% on Energy, Delays Fed Cuts

5/13/2026

Summary

U.S. CPI Rises

U.S. consumer prices rose 3.8 percent in April 2026, the increase since May 2023.
Labor Department said the rise stemmed from energy costs that rose 3.8 percent month-over-month and 18 percent year-over-year.
AAA reported gasoline above $4.50 per gallon, diesel nearly doubled, and Core CPI rose 2.8 percent YoY in April.
The CPI rise weakens the case for Federal Reserve (Fed) rate cuts, expected only in 2027 as Kevin Warsh prepares to replace Jerome H. Powell.

Summary

U.S., Israel Attack

On Feb. 28, the United States and Israel attacked Iran, leading Iran to close the Gulf of Hormuz.
The closure stopped a route that moves about one-fifth of global oil and LNG, pushing energy prices higher.
Higher energy costs helped drive the 3.8 percent inflation rise recorded in April.
Federal Reserve officials cited the Hormuz dispute as a reason to delay rate cuts in 2026, warning the tension could extend higher-rate periods.

Summary

Trump Tax Pause

President Donald Trump favored temporarily suspending the 18-cent federal gas tax to ease fuel costs.
Airline fares rose 2.8 percent in April while ground beef prices rose 2.7 percent, up 14.5 percent year-over-year.
Trump called Tehran’s response “a piece of garbage,” said the cease-fire is on “life support,” and claimed voters’ financial concerns do not influence his Iran-war approach.

Summary

U.S. Jobs Rise

The Bureau of Labor Statistics (BLS) reported the U.S. added 115,000 jobs in April, beating forecasts.
Wage growth slipped from 4% in November to 3.4% by March.
Goldman Sachs economists Jessica Rindels and Ronnie Walker expect April airfares to rise 3% on travel-services inflation.
Crude oil settled near $100 per barrel after topping $120.
U.S. stock indexes kept climbing while analysts say energy costs have not yet lifted core-goods prices.

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U.S. CPI Rises

U.S. consumer prices rose 3.8 percent in April 2026, the increase since May 2023.
Labor Department said the rise stemmed from energy costs that rose 3.8 percent month-over-month and 18 percent year-over-year.
AAA reported gasoline above $4.50 per gallon, diesel nearly doubled, and Core CPI rose 2.8 percent YoY in April.
The CPI rise weakens the case for Federal Reserve (Fed) rate cuts, expected only in 2027 as Kevin Warsh prepares to replace Jerome H. Powell.

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