US Inflation Surges, Wiping Out Wage Gains

Summary

U.S. consumer prices surged in April, with the consumer price index climbing 3.8% year over year and 0.6% from March, driven by soaring energy costs due to the ongoing conflict with Iran. Gasoline alone jumped 5.4% in that month. While core prices, excluding food and energy, rose more moderately, wage gains are now being wiped out for the first time in th…

Show notes

U.S. consumer prices surged in April, with the consumer price index climbing 3.8% year over year and 0.6% from March, driven by soaring energy costs due to the ongoing conflict with Iran. Gasoline alone jumped 5.4% in that month. While core prices, excluding food and energy, rose more moderately, wage gains are now being wiped out for the first time in three years. Consumers are cutting back on spending, and companies like Whirlpool are feeling the pinch, with revenue down nearly 10%. The Fed is

Themes

• daily