Key inflation measure rises by most in three years in April as gasoline prices spike
- On Thursday, the Commerce Department reported the Personal Consumption Expenditures price index rose 3.8% annually in April, the highest rate in nearly three years under new Federal Reserve chief Kevin Warsh.
- Inflation is flaring largely due to the Iran war's impact on energy prices, creating a major challenge for Warsh as he steps into the Federal Reserve role.
- Consumers took their foot off the pedal, with spending rising 0.5% in April, a retreat from the 1% jump recorded the month before as Americans face rising costs.
- CME FedWatch data shows a 40% probability of a Federal Reserve rate hike in December, up from 3% in June, as some economists pencil in potential increases later this year.
- President Trump has expressed eagerness for the Federal Reserve to lower borrowing costs for consumers and businesses, complicating Warsh's challenge to balance growth with curbing inflation.
102 Articles
102 Articles
Inflation hits highest level in nearly 3 years, Fed's preferred gauge shows
A worker stacks groceries at a store in Brooklyn on May 12, 2026, in New York City. The rise in fuel, food, and other essentials for millions of Americans comes as the war with Iran continues to be a drag on both the domestic and international economy. (Photo by Spencer Platt/Getty Images) (WASHINGTON) — Inflation jumped for a second consecutive month in April as the Iran war drove up gasoline prices and strained household budgets, government da…
US inflation hits three-year high in April as Americans' income and spending power erodes
In April, inflation rose to 3.8%, the highest in three years, impacting American finances. Prices for essentials like groceries and electricity are increasing, prompting concerns among Federal Reserve officials about potential rate hikes instead of cuts as consumer incomes decline.
Fed’s preferred inflation gauge worsens as Iran war sends food, energy prices surging
US inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists' views that the Federal Reserve could hold interest rates unchanged well into next year.
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