Key inflation gauge worsens, eroding Americans' income and spending power

Inflation climbed to 3.8% year‑over‑year in April — the highest in three years.
Spiking gas and food prices, along with broader price increases, are squeezing households; real (inflation‑adjusted) incomes dipped 0.1% in April.
Persistent inflation above the Fed’s 2% target raises the chance of no rate cuts (or even a hike) and could become a political headache heading into the midterms.