Consumer prices rose 3.8% annually in April, the highest since May 2023

Prices that consumers pay for a wide range of goods and services increased at a faster-than-expected pace in April, raising further concerns about the inflationary impact on the U.S. economy. The consumer price index rose at a seasonally adjusted 0.6% for the month, putting the one-year pace at 3.8%, the Bureau of Labor Statistics reported Tuesday. The monthly rate was as forecast, but the annual rate was 0.1 percentage point above the Dow Jones consensus. Excluding food and energy, core CPI increased 0.4% and 2.8% respectively, keeping inflation well above the Federal Reserve's 2% goal. The annual headline inflation rate was the highest since May 2023 and was up half a percentage point from March. Core inflation rose 0.2 percentage point annually. Energy prices, which jumped 3.8%, again was a major contributor to the inflation surge, though food prices also climbed 0.5%. For energy, that put the 12-month gain at 17.9%, while food was up 3.2%. The gasoline index increased 28.4% annually. Though energy and in particular gasoline has been much of the headline story, inflation pressures also came from a variety of other areas. Shelter costs rose 0.6%, the tariff-sensitive apparel category increased 0.6% and airline fares accelerated 2.8%, putting the 12-month gain at 20.7%. Tariffs also seemed to hit other areas, with household furnishings and operations up 0.7%. …