# US Inflation Rises to 3.8% in April, Highest in Three Years

**Published:** 2026-05-15T15:50:31.000Z  
**Topic:** Ethereum  
**Sentiment:** bullish  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/bdfaaba1-b5df-4394-af8c-f63aa6dedae6

US inflation hit 3.8% in April, the highest level in nearly three years, driven by energy, food, and shelter costs. Consumer spending rose 0.5% despite flat

US consumer inflation rose to 3.8% in April, marking its highest annual rate in nearly three years [2]. This figure exceeded market expectations of 3.7% and followed a 3.3% rate in March [1]. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, increased 0.4% from the previous month [2].

Energy prices jumped 17.9% year-on-year in April, while food and shelter costs climbed 3.2% and 3.3% respectively [1]. On a monthly basis, consumer prices rose 0.6%, with energy accounting for over 40% of that increase [1]. The shelter index increased 0.6% and food rose 0.5% month-over-month [1]. Core PCE, which excludes volatile food and energy prices, increased 3.3% year-on-year and 0.2% month-on-month [2].

Despite the rising costs, consumer spending continued to grow. Personal consumption expenditures (PCE) increased by $111.1 billion, or 0.5%, in April [2]. This spending was driven by increases in services, up $67.2 billion, and goods, up $44.0 billion [2]. Categories like gasoline, housing, recreation, food services, and healthcare all saw increased spending [2].

This continued spending occurred even as personal income remained largely unchanged in April, and disposable personal income declined by $19.9 billion, or 0.1% [2]. The personal saving rate fell to 2.6% of disposable income, down from previous levels, indicating consumers drew on savings to maintain spending [2]. The decline in personal income was primarily due to a fall in farm proprietors' income, specifically lower payments from the Farmer Bridge Assistance Program, which closed applications in mid-April [2]. The sustained consumer spending amidst weak income growth and rising inflation presents a key challenge for economic stability.

## Sources
1. Ednews — [US inflation hits 2-year high in April, reaching 3.8%](https://ednews.net/en/news/economy/731164-inflation-hits-year-high-april)
2. Newkerala — [US Inflation Hits 3.8% in April, Highest in 3 Years](https://www.newkerala.com/news/a/us-inflation-rises-38-april-highest-level-nearly-519.htm)

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Cite as: TrendWatcher, "US Inflation Rises to 3.8% in April, Highest in Three Years", https://www.trendwatcher.in/article/bdfaaba1-b5df-4394-af8c-f63aa6dedae6