WASHINGTON, - U.S. inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists' views that the Federal Reserve could hold interest rates unchanged well into next year.
The personal consumption expenditures price index jumped 3.8% in the 12 months through April, the largest rise since May 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. PCE inflation advanced by an unrevised 3.5% in March.
