Story perspectives

US April Inflation Hits 3.8%, Fed May Delay Cuts

5/29/2026

Summary

U.S. Inflation Rises

U.S. inflation rose to 3.8% in April, the highest rate since May 2023.
Core inflation increased to 3.3% in April, its highest level since October 2023.
The monthly price rise slowed to 0.4% in April after a 0.7% gain in March.
Inflation-adjusted incomes fell 0.1% in April.
Inflation-adjusted spending rose 0.1% in April, prompting the Federal Reserve (Fed) to consider delaying rate cuts.

Summary

Iran War Inflates

War-related oil disruptions from the Iran conflict have slowed shipping in the Strait of Hormuz, choking a route for oil, gas and fertilizer trade and fueling inflation.
President Donald Trump’s tariff package is cited as pushing durable-goods and wholesale prices higher.
Federal Reserve (Fed) Chair Kevin Warsh is expected to keep rates steady this year.
A drop in farm assistance payments weighed on household incomes, the Commerce Department reported.

Summary

Heather Long Warns

Personal savings fell to 2.6% in April, the lowest level since 2.2% in June 2022.
Average hourly earnings rose 3.6% year-over-year in April, trailing the 3.8% inflation rate.
Heather Long, chief economist at Navy Federal Credit Union, called the 2.6% rate a typo because it is the lowest in 65 years.
Long warned that cash reserves will shrink later this year as tax refunds disappear and wage growth lags inflation.

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U.S. Inflation Rises

U.S. inflation rose to 3.8% in April, the highest rate since May 2023.
Core inflation increased to 3.3% in April, its highest level since October 2023.
The monthly price rise slowed to 0.4% in April after a 0.7% gain in March.
Inflation-adjusted incomes fell 0.1% in April.
Inflation-adjusted spending rose 0.1% in April, prompting the Federal Reserve (Fed) to consider delaying rate cuts.

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