Inflation posts largest annual increase in three years in April

Inflation rose at its fastest pace in three years in April, driven by higher energy costs amid the Iran conflict. The BEA reported the PCE price index rose 3.8% year over year and 0.4% month over month. Gasoline prices jumped 12.3% in April, while energy products rose 5.5%, with shipping disruptions linked to the Middle East war contributing to broader price pressures. Disposable income after inflation fell for a third straight month and the saving rate hit a four-year low. Excluding food and energy, the PCE index rose 3.3% year over year, marking the strongest core gain in the period.