April US Consumer Prices Rise as Expected, Slower Than in Previous Month
The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.6% in April, as expected and following a 0.9% increase in March, according to data released Tuesday by the Bureau of Labor Statistics.Core CPI, which excludes food and energy prices, rose by 0.4%, higher than the consensus estimate for a 0.3% increase. Core CPI rose by 0.2% in March.Food prices increased by 0.5%, while energy prices were up 3.8%. Gasoline prices were up 5.4%.Owners' equivalent rents and regular rent both increased by 0.5%. There were also notable gains in apparel and airline fares, while medical services prices were flat.CPI excluding food, energy and shelter rose by 0.2% after a 0.1% increase in the previous month.The year-over-year rates for overall and core CPI increased to 3.8% and 2.8%, respectively, from 3.3% and 2.6% in the previous month.The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing.The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Federal Reserve as a sign of underlying inflation pressures.Rising inflation is a sign of strong US consumer demand, but both stocks and bond normally react negatively to level of price growth that would necessitate higher interest rates.
