Consumer inflation rose in April in line with market expectations, driven by external geopolitical factors

Inflation registered an increase in April, reaching its highest level in three years, although it remained completely in line with market projections.

The consumer price index (CPI) stood at 3.8% year-on-year, the Bureau of Labor Statistics indicated. While it represents an increase from 3.3% in March and 2.4% in February, this is a predictable move stemming from tensions in the Middle East.

Gasoline, the main driver of the rise

Gasoline has had a strong impact on this rise, with a year-on-year increase of 28.4%, making almost all sectors more expensive, from groceries at the supermarket to rents.

Despite the rise in fuel prices, according to the American Automobile Association (AAA), the average price of a gallon of regular gasoline stands at $4.50, still far from the historical peaks recorded in previous administrations.

Gasoline, far from Biden's peaks

According to the statistics bureau, the indexes that rose during the month include furniture and household goods, airfare, personal care, apparel and education. In contrast, the indexes for new vehicles, communications and health care were among the top decliners last month.

During the Biden Administration, gasoline prices reached an all-time high in June 2022, when a gallon of regular reached $5.11.