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Inflation surged in April to the highest rate since 2023

Business Insider·Madison Hoff·21 days ago
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Patrick T. Fallon / AFP via Getty Images The new CPI report showed annual inflation sped up to 3.8% in April, the highest rate since 2023. Higher energy prices due to the Iran war are affecting consumer prices. Prices at the pump are having unequal effects on consumers, depending on their household income. US annual inflation accelerated more than expected, with the consumer price index rising 3.8% in April from a year ago. Economists expected a 3.7% increase, and it's the highest inflation rate since 2023. Stephen Juneau, senior economist in BofA Global Research, told Business Insider before March's reading last month that sustained higher inflation would lead to cooler real income growth and less purchasing power. AAA data showed gas prices have climbed to around $4.50 on average from just under $3 at the end of February when the Iran war started. Prices at the pump are likely leading lower-income households to modify their gas consumption, while higher-income households are mostly trucking along.…

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