US key inflation gauge worsens, eroding Americans’ income and spending power

AI Summary

In April, the US experienced its highest inflation in three years, with a key gauge increasing to 3.8%, driven by rising gas and food prices. This inflation surge is eroding Americans’ income and spending power, signaling economic pressures ahead.

A key inflation gauge accelerated in April to the highest level in three years, the latest sign that spiking gas prices and higher food costs are squeezing Americans’ finances. Inflation jumped to 3.8 per cent in April compared with a year ago, the Commerce Department said on Thursday, up from 3.5 per cent in March and the highest since May 2023. On a monthly basis, prices rose 0.4 per cent, down from the 0.7 per cent jump in March. The report showed that prices have risen for many items in...