Financial News: U.S. Consumer Prices Climb 0.4% In April, Slightly

U.S. Consumer Prices Climb 0.4% In April, Slightly Less Than Expected

05/28/2026 - 10:41:00 (RTTNews)

(RTTNews) - The Commerce Department released a report on Thursday showing consumer prices in the U.S. increased by slightly less than expected in the month of April.

The report said the personal consumption expenditures (PCE) price index rose by 0.4 percent in April after climbing by 0.7 percent in March. Economists had expected prices to increase by 0.5 percent.

The Commerce Department also said the annual rate of growth by the PCE price index accelerated to 3.8 percent in April from 3.5 percent in March, in line with estimates.

The monthly increase by consumer prices came as prices for goods grew by 0.7 percent, while prices for services rose by 0.3 percent.

Excluding food and energy prices, the core PCE price index crept up by 0.2 percent in April after rising by 0.3 percent in March. Core prices were expected to rise by another 0.3 percent.

The annual rate of growth by the core PCE price index ticked up to 3.3 percent in April from 3.2 percent, matching expectations.

"The downside surprise in the headline and core PCE deflators for April disguise worrisome evidence that underlying price pressures have been getting worse even before the war's energy impacts make their way into other prices," said FHN Financial Macro Strategist Will Compernolle.

He added, "There are signs that households have declining room to maintain spending levels amid price increases, but the labor market is fine and overall growth is robust. Today's data firm the Fed's focus on inflation risks."

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income edged down by less than a tenth of a percent in April after climbing by 0.5 percent in March. Economists had expected personal income to rise by 0.4 percent.

Meanwhile, personal spending grew by 0.5 percent in April after jumping by 1.0 percent in March. The increase came in line with economist estimates.

With spending climbing and income virtually unchanged, personal income as a percentage of disposable personal income plunged to 2.6 percent in April from 3.2 percent in March.

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