Inflation Broadens Beyond Oil as April CPI Hits Near Three-Year High

CNBC reported Tuesday that April inflation surged well beyond energy costs, with the consumer price index rising 0.6% for the month and pushing the 12-month rate to 3.8%. That marks the fastest pace of annual price growth in nearly three years, according to Bureau of Labor Statistics data.

Food and Grocery Costs Accelerate Sharply

Grocery bills took a notable hit last month. Food bought at home rose 0.7% from March to April, the steepest single-month climb since August 2022, leaving prices 2.9% above year-ago levels. Uncooked ground beef surged 2.7% in April alone, lifting its annual gain to 14.5% as cattle prices remain elevated. Tomatoes, largely imported and subject to President Donald Trump‘s tariff regime, jumped 15.1% in April and now cost nearly 40% more than a year earlier. Coffee prices extended their climb, rising 2% in the month for an 18.5% annual increase driven by persistent supply concerns.

Also Read: What Rising Commodity Prices Mean for Global Markets

Housing and Services Add Pressure

Shelter costs rose 0.6% in April and are up 3.3% over the past year. Lodging away from home posted a sharper 2.4% monthly gain, while tenant and household insurance is running 7.2% hotter on a 12-month basis. Services also showed strain. Video rental and subscription costs are 16.6% more expensive than a year ago after a 2.1% monthly jump. Delivery service fees rose 4.3% in April, bringing their annual increase to 13.6%.

Background: Shutdown Data Gap Muddied Earlier Readings

Economists had already flagged concerns about housing data accuracy following last year’s government shutdown. Measurements for owners’ equivalent rent, a key input for overall shelter inflation, were not fully captured during that period. That data lapse created uncertainty around whether earlier readings were accurately reflecting conditions on the ground.

Consumer Sentiment Already Strained Before the Report

Bret Kenwell, U.S. investment analyst at eToro, told CNBC that households are struggling to find relief beyond the pump. The report arrived just days after the University of Michigan released a preliminary consumer sentiment reading that hit a record low. Rising energy costs tied to the Middle East conflict were cited as a primary drag on confidence. Tuesday’s CPI data confirmed those pressures extend across household budgets, from beef and tomatoes to streaming subscriptions and footwear, which rose 1.4% month over month.

Read Next: Fed Holds Rates Steady as Inflation Outlook Clouds