United States: Inflation increases to nine-month high in April
May 15, 2014
In April, consumer prices increased 0.3% over the previous month in seasonally-adjusted terms, which followed the 0.2% rise recorded in March. The increase, which was in line with market expectations, was driven primarily by a steep jump in prices for gasoline as well as higher food prices.
Annual inflation increased from 1.5% in March to 2.0% in April, which marked the highest result since July of last year. In April, the monthly core inflation index, which excludes food and energy prices, stayed put at the 0.2% recorded in March and came in slightly above market expectations of a 0.1% rise. Annual core inflation came in at 1.8% in April (March: +1.6%), while annual average core inflation held steady at February's 1.7%, the lowest level in more than two years.
FocusEconomics Consensus Forecast participants expect inflation to average 1.7% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel expects average inflation to rise to 2.1%.
Author: Carl Kelly, Economist