Inflation in April was another scorcher. Here are some month-over-month and year-over-year charts.The BLS reports the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent on a seasonally adjusted basis in April, after rising 0.9 percent in March.Over the last 12 months, the all items index increased 3.8 percent before seasonal adjustment.The BLS rounds to 1 decimal point. I show 2 decimal placesCPI Month-Over-MonthAll Items: 0.64 percentAll Items Excluding Food and Energy: 0.38 percentFood and Beverage: 0.49 percentShelter: 0.61 percentOwners’ Equivalent Rent: 0.53Rent of Primary Residence: 0.55Medical Care Services: 0.00 percentMedical Care Commodities: -0.35 percentEnergy: 3.81 percentGasoline: 5.44 percentFood at Home: 0.68 percentFood Away from Home: 0.23This is structurally much worse that last month’s 0.87 percent rise because it is very broad based.This month, everything jumped but medical.CPI Month-Over-Month Energy, Gasoline, UtilitiesEnergy, Gasoline, Utilities and Fuel Month-Over-MonthEnergy: 3.81 percentGasoline: 5.44 percentUtilities and Fuel: 1.38These increases are on top of last month’s huge leaps.CPI and PCE Year-Over-Year Percent Change3.8 percent is the highest year-over-year inflation since 4.0 percent in May of 2023.CPI Year-Over-Year Percent Change Major CategoriesCPI Year-Over-Year Percent Change Major CategoriesAll Items: 3.8 percentAll Items Excluding Food and Energy: 2.8 percentFood and Beverage: 3.1 percent (13.56 percent of CPI)Shelter: 3.0 percent (35.32 percent of CPI)Medical Care Services: 3.2 percent (6.89 percent of CPI)Utilities and Fuel: 6.0 percentEnergy: 17.9 percent (7.09 percent) of CPICPI Year-Over-Year Select ComponentsCPI Year-Over-Year Percent Select CategoriesAll Items: 3.8 percentMedical Care Services: 3.2 percentUtilities and Fuel: 6.0 percentEnergy: 17.9 percent of CPIGasoline: 18.9 percent of CPIA Small Price to PayHot water soup is a small price to pay for giving Iran control of the strait.Wait! What?Never mind, focus on the mission.Q: What’s the Mission?A: Our mission is to return the strait to where it was before we started this war.That’s going spectacularly because Iran has no cards.Truth Social: The Iranians don’t seem to realize they have no cards, other than a short term extortion of the World by using International Waterways. The only reason they are alive today is to negotiate! President DONALD J. TRUMPI’m sure glad for that. Imagine if Iran had cards.Powerful ResetTruth Social: WORLD’S MOST POWERFUL RESET!!! President DJTOn occasion, usually by accident, Trump manages to tell the truth.Giving Iran control of the strait while it collects tolls paid in cyrpto and yuan, coupled with punishing everyone with asinine tariffs, was indeed the most powerful (albeit stupid) global reset combination in decades.Patience LimitedOn March 30, 2026, I noted Powell Warns the Markets and Trump that His Patience with Inflation Has LimitsPowell’s speech was to Harvard students but read between the lines.Powell’s warning was aimed straight at Trump. But that’s OK because Powell is no longer Fed Chair.Kevin Warsh is the new Fed Chair.Baptism of Fire Coming UpThe May PCE numbers are due June 10. That’s just in time for Kevin Warsh’s first FOMC meeting as Fed Chair.Trump expects Warsh to deliver a rate cut. I believe the Fed bias will be shift to tighten from neutral.Warsh’s first press conference rates to be a real hoot.Yesterday, I noted Cleveland Fed CPI and PCE Forecast for Next Two Months Is an Inflation DisasterMonth-Over-Month Inflation NowcastApril CPI: 0.45 percentApril Core CPI: 0.21 percentYear-Over-Year Inflation NowcastApril CPI: 3.56 percentApril Core CPI: 2.56 percentIt appears the Cleveland Fed was more than a tad bit optimistic for today.Finally, please consider Oil Market Will Lose 100 Million Barrels a Week if Hormuz Remains ClosedTrump says the cease-fire is on life support. So what?When year-over year inflation surges for at least two more months, what will Warsh do about it?Original Post