Consumer Prices Rise to Highest Point Since 2023

Consumer prices rose 3.8% over the past 12 months, marking the highest point since May 2023.

The Numbers: The Bureau of Labor Statistics (BLS) reported Tuesday that the consumer price index (CPI) rose at an annual rate of 3.8% and 0.6% from a month ago. The core prices, which exclude volatile measurements of energy and food, were up 0.4% on a monthly basis and 2.8% on a 12-month basis. These numbers are slightly higher than economists' predictions of 0.3% and 2.7%.

Breakdown of Prices: Energy prices have gone up amid the war with Iran and the closure of the Strait of Hormuz, with prices up 17.9% over the last 12 months. According to BLS, the energy index accounted for over 40% of the CPI increase in April. Gasoline prices are up 28.4% from a year ago, electricity is up 6.1%, and food prices are up 3.2%.

The Fed: Axios (Lean Left bias) said in coverage that this matters because it is "making it difficult for the Federal Reserve to cut interest rates just as President Trump's pick is set to take the helm of the central bank."  Fox Business (Lean Right) cited chief global strategist at Principal Asset Management, Seema Shah, saying that "the inflation data has likely pushed a Federal Reserve rate cut until December at the earliest."

"Major Political Blow": The Hill (Center) called the latest inflation data a "major political blow" to Trump and Republicans, adding that they "face a potential midterm election revolt over the economy." 

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