A key inflation gauge accelerated in April to the highest level in three years, the latest sign that spiking gas prices and higher food costs are squeezing Americans’ finances.

US CPI inflation jumped to 3.8% YoY in April 2026, outpacing 3.6% wage growth. Real wage compression frustrates voters and delays Fed rate cuts.

A key inflation gauge accelerated in April to the highest level in three years, the latest sign that spiking gas prices and higher food costs are squeezing Americans’ finances.