WASHINGTON — A key measure of inflation accelerated in April to its highest level in three years, as gasoline prices surged and higher food costs is squeezing Americans’ finances.
The U.S. Commerce Department said on Thursday that inflation jumped to 3.8% in April from a year earlier, up from 3.5% in March and the highest level since May 2023. On a monthly basis, prices rose 0.4%, down from a 0.7% increase in March.
Prices rose for many commodities except natural gas, the report showed, suggesting inflation could persist and create problems for congressional Republicans in this year’s midterm elections. Inflation is also significantly above the Fed’s 2% target, meaning Fed policymakers may decide give up any cuts Key short-term interest rates this year. Some officials have said the next move may be to raise rates rather than cut them.
Excluding the volatile food and energy categories, core inflation rose to 3.3% in April from 3.2% the previous month. This is the highest core price since November 2023. One positive sign in the report: Core prices rose just 0.2% in April from March.
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