US Inflation Hits 3-Year High in April, Erasing Pay Gains for First Time Since 2023
Updated
Updated · CNN · May 21
US Inflation Hits 3-Year High in April, Erasing Pay Gains for First Time Since 2023
9 articles · Updated · CNN · May 21
April inflation climbed to a three-year high, overtaking average wage growth and wiping out Americans’ real pay gains for the first time since 2023.
Four-year highs in oil and gas prices driven by the Iran war fueled the jump, with broader pressure spreading as food prices rose 3.2% year over year and air fares surged 20.7%.
Consumers have not yet pulled back sharply: April core retail sales still rose just under 0.5%, while March job growth was the strongest in two years and unemployment stayed low.
Lower- and middle-income households are under the most strain, as Bank of America Institute data showed higher earners’ pay increases covered the gas-price hit 17-fold.
The squeeze is rippling into markets, pushing the 10-year Treasury yield to its highest in more than a year and threatening even higher mortgage rates if the Strait of Hormuz stays shut.
How can the economy be booming if American consumer sentiment has hit an all-time low?
Beyond the Iran war, is the rapid growth of AI creating a new, hidden inflation crisis?
With global supply chains broken, can the pivot to renewable energy happen fast enough?