Headline CPI rose 3.8% year-over-year in April 2026, accelerating from 3.3% in March and marking the highest reading since May 2023. Core CPI, which strips out food and energy, came in at 2.8%. The BLS released the data on May 12, 2026.
The month-over-month jump in headline was the sharpest in several years. Economists had been watching for tariff pass-through in import-heavy categories, and April’s print suggests that pressure is now moving through the supply chain into retail prices. Goods that were deflationary as recently as early 2025 have shifted to inflationary as the new import cost structure filters through.
For the Fed, this complicates the calculus. The headline print gives them less room to cut rates even as the labor market shows signs of softening. Core at 2.8% remains above the Fed’s 2% PCE target (the two measures aren’t identical, but they track). A second consecutive monthly acceleration would likely keep rate cuts off the table for the rest of 2026.