US inflation hits 3.8% in April, highest since May 2023

A key US inflation gauge accelerated to 3.8% in April, the highest since May 2023, driven by high petrol prices and food costs. The Commerce Department reported a 0.4% monthly price increase, down from 0.7% in March. Core inflation, excluding food and energy, rose to 3.3% from 3.2%, the highest since November 2023, though core prices rose only 0.2% month-over-month. Consumer incomes were unchanged from March, and inflation-adjusted incomes slipped 0.1%. The Federal Reserve's 2% target remains unmet, potentially delaying interest rate cuts; some officials have signaled a possible rate hike. The data poses challenges for congressional Republicans in the midterm elections.