Inflation surged to 3.8% in April, its highest level in nearly three years, as energy costs and travel prices pushed the monthly reading higher, the Bureau of Labor Statistics said Tuesday. Prices rose 0.6% from March, while core inflation climbed 0.4%.

The rise in the cpi report was driven in large part by energy. The Bureau of Labor Statistics said the index for energy rose 3.8% in April and accounted for over forty percent of the monthly increase in all items. As of Tuesday morning, oil prices had climbed more than 70% since the start of the year, and the average price of a gallon of gas was $4.50.

Airfares rose 20% from a year ago, and food away from home prices jumped 0.7% in April. Services prices increased 0.5% from the month before. Prices fell slightly in the new vehicles, medical care, health insurance and communications categories, while the price of used vehicles was flat and vehicle maintenance costs ticked down.

The April numbers come after Friday's jobs report showed wage growth had slowed to 3.6%, down from almost 4% in November. That means pay is no longer keeping pace with the rise in prices, leaving households with less room to absorb higher costs for fuel, food and travel.

Citigroup said Monday that energy costs likely would not start to feed through to core goods prices for at least a few more months. That leaves open the possibility that the hit from higher oil and gas prices is still moving through the economy. The article says the war in Iran is causing a ripple effect across the economy and pushing energy prices higher, and that the pressure may not fully show up in store shelves and service bills yet.

For consumers, the question now is not whether inflation is back, but how long it stays above wage growth. With energy prices elevated and core inflation still rising, April's data points to another stretch in which higher living costs are doing more damage than pay raises can offset.