The Consumer Price Index rose 3.8 percent compared to April 2025, the Bureau of Labor Statistics reported on May 12, 2026. That is up from 3.3 percent in March and is the highest year-over-year reading since May 2023. Core inflation, which strips out food and energy, came in at 2.8 percent.
Economists have been watching for evidence that the tariffs imposed earlier this year would push up consumer prices. April’s report is being read as confirmation that those costs are now making their way through supply chains to store shelves. Goods categories that had been flat or declining are now showing price increases, reversing a trend that had helped keep overall inflation in check through much of 2025.
For the Federal Reserve, the report adds complexity to an already difficult moment. The central bank has been trying to bring inflation back to its 2 percent target without tipping the economy into recession. A headline number heading in the wrong direction makes it harder to justify rate cuts, even as other parts of the economy show signs of slowing down.