U.S. April CPI rise reaches highest level since mid-2023 amid high energy costs

The U.S. consumer price index (CPI) for April increased by 3.8 percent year on year, up from 3.3 percent in March as energy prices hovered at high levels, data released by the U.S. Bureau of Labor Statistics showed on Tuesday.

This marks the highest level of U.S. headline inflation since May 2024, underlining challenges facing policymakers in the country. Observers have raised concerns as headline inflation in April surpassed the 3.6-percent growth in national average hourly earnings.

Heather Long, chief economist at Navy Federal Credit Union, said for the first time in three years, "inflation is eating up all wage gains."

Meanwhile, the index for energy increased 3.8 percent month on month in April, accounting for over 40 percent of the monthly all items increase. In particular, gasoline prices surged 28.4 percent year on year amid oil supply shocks. The index for food increased 0.5 percent month over month in April in comparison to zero growth in the previous month.

Notably, signs emerged that core inflation has also picked up. In April, both shelter and apparel prices rose 0.6 percent from the previous month, while airline fares increased 20.7 percent year on year.

Core CPI, which excludes volatile food and energy components to measure underlying inflation, rose 0.4 percent month on month in April, up from 2.6 percent in March. The April figure was up 2.8 percent year on year.

Sticky inflation is expected to continue to weigh on U.S. households, especially low-income groups.

China on Wednesday urged certain countries with so-called "diplomatic ties" with its Taiwan region to make a correct choice that keeps up with the prevailing trend of history.

At a press conference in Beijing, Zhang Han, spokeswoman for the State Council Taiwan Affairs Office, responded to a media query regarding the recent tout visit to the Taiwan region by Paraguayan President Santiago Pena.

"The one-China principle is the basic norm governing international relations and the prevailing international consensus. Around the world, 183 countries have already established diplomatic relations with China on the basis of the one-China principle," said the spokeswoman.

"The provocative moves by the Democratic Progressive Party (DPP) authorities in Taiwan to pursue their separatist agenda go against the trend of history and will eventually end in complete failure," she said.