The CPI for all urban consumers rose 0.8% in April, with the all items index increasing 4.2% before seasonal adjustment over the past 12 months, the largest one-year increase since the 4.9% gain for the period ending September 2008.
The index for all items less food and energy rose 0.9% in April, its largest monthly increase since April 1982, the US Bureau of Labor Statistics said.
"Higher US inflation data might spook investors as it might push forward expectations of tighter monetary policy and higher borrowing costs might stem the economic recovery," Marex Spectron's Anna Stablum noted.
North American markets closed lower, while the FTSE 100 closed up 0.8% and the benchmark S&P/ASX 200 was off in morning trade.
In terms of commodities, the strength in the iron ore price and Chinese demand show no sign of waning.
The MySteel 62% Australian fines price closed up 2.81% as it continues to rise above Monday's record to US$219.50 per tonne.
The price broke through $230/t according to Fastmarkets, which put the 62% fines CFR Qingdao at $237.57/t.
Iron ore major Vale closed 3.7% lower in Brazil, Rio Tinto rose 0.52% in London and BHP was up a similar amount in midday Australian trade.