U.S. consumerinflation reaches three-year high

Government data released on Tuesday showed that consumer inflation in the United States rose to a three‑year high in April.

The Consumer Price Index (CPI) increased 3.8 percent year‑on‑year, up from 3.3 percent in March, according to the U.S. Bureau of Labor Statistics.

The escalation of the US‑Israel conflict with Iran has intensified violence across the Middle East, with Iranian retaliation targeting Washington’s regional allies and effectively closing the Strait of Hormuz.

Under normal conditions, roughly one‑fifth of the world’s oil and natural gas transits this waterway; the blockage has therefore driven global energy prices sharply higher.

In April, the U.S. energy price index surged 17.9 percent compared with a year earlier, representing the largest increase among all CPI components.

Food prices were 3.2 percent higher in April than in the same month last year.

Core CPI inflation, which excludes the more volatile food and energy categories, registered 2.8 percent in April, up from 2.6 percent in March.

American consumers have endured several years of inflation that exceeds expectations, while policymakers continue to grapple with achieving price stability more than five years after the pandemic began.

The Federal Reserve maintains a long‑term inflation target of 2 percent, and several Fed officials have signaled that additional interest‑rate hikes may be necessary to curb rising prices.

AFP

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]