WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 3.8% for the 12 months ending in April, above last month’s 3.3% reading and economists’ expectations. From March to April, the inflation rate decreased to 0.6% from 0.9%.
April data showed the annualized rate of inflation is above the year-earlier pace. Real average hourly earnings for all private-sector workers dropped in April, down 0.3% over the past year.
Core inflation, which excludes volatile energy and food prices, rose 0.4% in April and increased slightly at a pace of 2.8% year-over-year in April, from 2.6% in March.
Energy prices increased 3.8%, and gasoline prices rose 5.4% last month due to the conflict in Iran. New vehicle prices, however, fell 0.2%. Medicinal drug prices also decreased 0.3% in April and are down over the past year.
Patrice Onwuka, vice president for economic policy at Independent Women, issued the following statement:
“For the second month in a row, inflation has risen entirely due to the conflict in Iran. We are beginning to see price hikes filter across the economy as many categories, including groceries, gasoline, and housing costs, rose notably from last month and this time last year. This increases burdens on households, especially low-income homes that spend disproportionately more of their income on essentials of food, energy, and shelter.
“It’s hard for Americans to see the Trump administration’s progress on bringing down inflation over the past year, virtually erased over the past 10 weeks. However, they understand that a resolution to the conflict in the Middle East will bring energy prices down precipitously to more manageable levels.
“We cannot underscore how timely and relevant the Working Families Tax Cuts (also known as the One Big, Beautiful Bill Act) are for Americans. Tax refunds were up 11% on average at $3,400. Thanks to the expansion and permanence of many provisions, take-home pay has been boosted by about $2,340 for a typical family with two children. Add to that tens of millions of Americans, who gained new tax savings that provide a cushion against rising prices. Over 6 million filers claimed No Tax on Tips, over 25 million filers claimed No Tax on Overtime, and over 30 million seniors claimed the Enhanced Deduction for Seniors.
“As conservatives in Congress and President Trump mull over how to provide more relief to families and workers right now, they must not lose sight of long-term solutions to affordability, including deregulation in housing and other sectors, tax reforms to remove painful penalties for homeowners, spending cuts that end inflationary subsidies, and reforms to increase price transparency in health care. Less regulation will spur more competition—from home building to child care—to bring down prices and deliver lasting cost savings for households.”
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