The prices of goods and services rose again in April, with the war in Iran continuing to push energy costs upward.
The consumer price index, released Tuesday by the Bureau of Labor Statistics, showed prices increased 0.6% in April. Prices are now 3.8% higher than a year ago, the BLS said.
March saw the largest month-over-month jump in consumer inflation since 2022. Combined with April’s increase, goods and services rose more than 1.5% in just two months.
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The index measures the costs of goods and services based on their importance, with food, shelter and energy carrying more weight.
Energy costs surged 3.8% in April, according to the BLS. Food and shelter costs have stayed well above 2% over the past year, reflecting broader inflation concerns.
Despite persistent inflation, wages had been keeping pace. But the latest report shows they rose only 3.5% over the past year, trailing price increases.
The data could signal the Federal Reserve will hold off on lowering interest rates in 2026. The CPI is a key factor in determining federal interest rates, alongside employment figures. Rising inflation or a weakening job market can prompt rate hikes.
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