U.S. Consumer Prices Rise 0.4% in April, Slightly Below Forecast

The U.S. Labor Department reported on May 28, 2026, that consumer prices increased 0.4% in April, a pace modestly below the 0.5% gain economists had forecast, signaling a potential easing of inflationary pressures. The Consumer Price Index (CPI) data showed the annual inflation rate edged down to 3.4% from 3.5% in March, ending a two-month streak of steady readings. Core CPI, which excludes food and energy, advanced 0.3% on the month against expectations of 0.4%, pushing the 12-month core rate to 3.6% from 3.8%. The slower-than-expected rise could influence the Federal Reserve’s interest-rate outlook as it debates the timing of potential cuts. Markets reacted cautiously, with fed-funds futures slightly increasing the odds of a September reduction.