Inflation stayed high last month, compounding the challenges facing the U.S. economy

A customer shops for meat at a Safeway store in San Rafael, Calif., on April 12, 2023. Consumer prices eased slightly in April from the previous month but are still too high for the Fed's comfort. (Justin Sullivan/Getty Images)

Inflation remained stubbornly high last month after more than a year of rising interest rates.

The Labor Department said Wednesday that consumer prices in April were 4.9% higher than a year ago, a slight slowdown from the 5% inflation rate in March. It was the smallest annual cost-of-living increase in two years.