The Commerce Department reported on Thursday that the annual inflation rate for the year ending in April rose to 3.8 percent. This figure, measured by the Personal Consumption Expenditures price index, represents a 0.4 percent increase on a month-to-month basis.
The PCE price index is the Federal Reserve's preferred gauge of inflation and jumped due to higher energy costs. The results matched expectations, which predicted an annual inflation rate of 3.8 percent for all items and 3.3 percent for core.
The 3.8 percent inflation rate in April is the highest since May 2023. Core inflation also rose to 3.3 percent, marking the highest core number since November 2023.