US consumer price index rises 3.8%, highest since May 2023
Tech US consumer price index rises 3.8%, highest since May 2023 Inflation just reminded everyone its still very much in the room. The US consumer price index climbed 3.8% year over year in April, marking the fastest pace of price increases since May 2023, when CPI hit 4%. The numbers behind the number Core CPI, which strips out the rollercoaster of food and energy prices to give a cleaner read on underlying inflation, rose 2.8% year over year. Wall Street consensus had expected 2.7%. On a month-over-month basis, headline CPI increased 0.3% in April. Thats the strongest single-month gain since June 2022, a period when inflation was still raging near its post-pandemic peak and the Fed was hiking rates at a pace not seen in decades. Services inflation and shelter costs continue to be the stubborn anchors keeping the index elevated. Energy prices, while not the primary driver this month, remain a wildcard that could push readings even higher if geopolitical tensions escalate or supply disruptions materialize. What the Fed is thinking A core reading of 2.8%, still sitting well above the 2% target, gives the Fed essentially zero reason to rush toward easing monetary policy. Markets had been pricing in the possibility of rate cuts in the