The April inflation report is in, and for the first time during President Trump’s second term, inflation has surged to 3.8 percent, the sharpest increase since May 2023. Core inflation, which excludes more volatile categories, also came in higher than expected for April at 2.8 percent.
According to the Bureau of Labor Statistics (BLS), rising energy costs alone accounted for roughly 40 percent of April’s overall rise in consumer prices, with energy prices climbing 3.8 percent for the month and 17.8 percent compared to April 2025. Their volatility is driven mainly by the ongoing conflict in Iran and the ongoing blockade of the Strait of Hormuz.
Airline services, which faced a 2.8 percent increase in April and a 20.7 percent increase over the last year was also another significant driver of rising costs.
BREAKING: April CPI inflation rises to 3.8%, its highest level since May 2023.
— The Kobeissi Letter (@KobeissiLetter) May 12, 2026
Core CPI inflation also rose to 2.8%, above expectations of 2.7%.
We are now experiencing post-pandemic inflation levels amid surging oil prices.
Odds of Fed rate HIKES are surging.
BREAKING: US CPI inflation officially rises to +3.8%, its highest level since May 2023, amid surging oil prices.
— The Kobeissi Letter (@KobeissiLetter) May 12, 2026
In just 6 months, US gas prices have risen +65%.
For the first time in 3 years, US inflation is outpacing US wage growth.
US consumers are losing purchasing power. pic.twitter.com/bbXfovR4Hb
According to the inflation report, gas prices rose 5.4 percent in April and are up 28.4 percent over the past year. That spike has rippled across the broader economy, driving up the cost of countless other goods, including food, which increased 0.5 percent in April and 3.2 percent over the last year, as companies face higher transportation and shipping costs.
BREAKING: 🇺🇸 US inflation jumps to 3.8%, above expectations
— WallStreetBets (@wallstreetbets) May 12, 2026
core CPI also rose to 2.8%
gas prices are ripping because of the Iran war
rate cuts are officially fighting for their life pic.twitter.com/Por4hUcRjh
Some economists have said that the inflation report spells trouble for the rest of the year.
“The American economy has entered a new chapter where inflation appears to have stepped up,” Joseph Brusuelas, the chief economist at RSM, said. “Median American families are going to find it very challenging to adjust going into the second half of the year.”
The Trump administration is currently taking steps to ease the financial burden on Americans. President Trump announced yesterday that he plans to temporarily suspend the federal gas tax, a move that would save drivers roughly 18 cents per gallon. However, suspending the tax would require congressional approval, and it remains unclear whether lawmakers are willing to support the proposal. The president has also explored lowering tariffs on beef to help reduce food costs, though that idea has faced pushback from congressional Republicans.
At the same time, President Trump is continuing efforts to bring the war with Iran to an end, repeatedly assuring Americans that prices will begin falling back toward previous levels once the conflict is resolved.