US Consumer Prices (Apr 2026)

The 0.4% m/m gain in core CPI in April was largely due to the expected jump in owners’ equivalent rent and another gain in airfares, rather than reflecting a significant broadening of inflation pressures. That said, core inflation pressures elsewhere are still a bit too strong for comfort and the FOMC is likely to be concerned by renewed signs of food inflation accelerating, given the risk that higher gasoline and food prices together will further boost households’ inflation expectations.