U.S. consumer inflation accelerates in April as CPI reaches nearly three-year high
Inflation in the U.S. picks up further in April, with consumer prices rising at the fastest annual pace in almost three years. The increase is driven by sharp energy costs and firmer food prices, while real weekly and hourly earnings both decline from March to April.
Highlights
- April headline CPI inflation rises to 3.81% year over year from 3.26% in March, with core CPI at 2.75% versus 2.60% prior.
- Energy prices surge 17.87% year over year, marking the largest component increase, while food inflation reaches 3.18%.
- Real average weekly earnings decline 0.19% from March to April, indicating inflation outpaces wage growth and erodes purchasing power.
April inflation data and regional trends
As reported by the Joint Economic Committee, headline Consumer Price Index inflation rises to 3.81% year over year in April, from 3.26% in March. Core CPI, which excludes food and energy, stands at 2.75% year over year, compared with 2.60% a month earlier.Energy prices post the strongest increase, with year over year inflation at 17.87%, a 21.61 percentage point change from April 2025. Food price inflation reaches 3.18%, up 0.42 percentage points from the same month last year.
Inflation also ends higher across all major U.S. regions from March to April. The Northeast records the highest rate at 4.4%, followed by the Midwest at 4.1%, the South at 3.6%, and the West at 3.5%.
Pressure on household purchasing power
Wage data in the same update indicate that price gains continue to outpace workers' purchasing power. From March to April, real average weekly earnings for all employees decrease by 0.19%, while real hourly earnings fall by 0.53%.The decline in earnings adds to the significance of the April inflation reading for households and businesses, as higher energy and food costs typically weigh more heavily on consumer budgets. The combination of faster headline inflation and weaker real pay suggests cost pressures remain uneven across regions and sectors of the economy.
In our earlier article, we covered how the House Ways and Means Committee linked the April 2026 CPI report to the impact of Republican tax policy, arguing that the Working Families Tax Cuts were providing near-term relief to households. The piece highlighted claims of record average tax refunds (around $3,300) and broader benefits for jobs and wages, while noting that many families still feel inflation pressures despite easing from prior peaks.
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