US inflation accelerates in April to 3.8%, the highest level in three years, according to a Commerce Department report cited across outlets. The year-on-year figure rises from 3.5% in March and is the highest since May 2023. On a monthly basis, prices increase by 0.4% in April, slowing from a 0.7% rise in March. Multiple sources link the renewed pressure on household budgets to higher costs for essentials, including gasoline and food, with gas prices highlighted as a key driver. One report also notes that inflation broadens beyond volatile energy and food items, suggesting the price pressures are not confined to a single category. Separately, outlets say the reading runs above the Federal Reserve’s 2% target, shaping expectations for monetary policy. Federal Reserve officials discussed whether they may avoid rate cuts this year, with some signaling that the next move could be a rate hike instead. Overall, the data is described as weakening Americans’ income and spending power as prices continue to rise for a range of goods.