This is a developing story about the April 2026 CPI inflation report and will be updated with more details.
Inflation surged in April as consumer prices rose amid the impact of the Iran war on the energy market and broader economy.
The Bureau of Labor Statistics on Tuesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.6% from a month ago and is 3.8% higher than last year. That’s the highest level since May 2023.
Expectations vs. reality
The 0.6% monthly increase was in line with the expectations of economists polled by LSEG, while the annual figure was hotter than the prediction of 3.7%.
So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.4% on a monthly basis and 2.8% from a year ago. Both of those figures were higher than economists’ predictions of 0.3% and 2.7%, respectively.
Economists have noted that the inflation data from December 2025 through April 2026 will be affected by data collection interruptions that occurred during last fall’s 43-day government shutdown.
During the shutdown, the BLS wasn’t able to gather data and used a carry-forward methodology to make up for the lack of an October CPI report and missing data in November’s report. Economists say this is likely to impart a downward bias on inflation data until this spring, when fresh data will negate the discrepancy.
The cost of living breakdown
High inflation has created severe financial pressures in recent years for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities and have less flexibility to save.
Energy prices rose 3.8% in April amid the Iran war’s disruption of Middle Eastern oil supplies, with prices up 17.9% in the last year. The BLS noted that the energy index accounted for over 40% of the overall CPI increase in April.
Gasoline prices increased 5.4% in April and are up 28.4% from a year ago. Electricity prices rose 2.8% on a monthly basis and are up 6.1% from a year ago. Utility gas service prices declined 0.1% in April and are up 3% in the last year.
Food prices rose 0.5% in April and were up 3.2% from a year ago. The food at home index rose 0.7% on a monthly basis and is up 2.9% from last year. The food away from home index increased 0.2% in April and is 3.6% higher than a year ago.
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