United States: U.S. inflation rises in April
May 17, 2016
In April, seasonally-adjusted consumer prices rose 0.4% over the previous month, which came in above the 0.1% increase tallied in March and also beat the 0.3% increase the market had expected. April’s jump, which was the fastest monthly increase since February 2013, was mainly the result of an increase in food and energy prices, which rose 0.2% and 3.4%, respectively.
Annually, inflation rose from 0.9% in March to 1.1% in April. As a result, annual average inflation inched up from 0.4% in March to 0.5% in April—a nine-month high.
Core consumer prices, which do not consider foodstuff and energy prices, rose 0.2% in April over the previous month. The result was up from the 0.1% increase tallied in March and matched expectations. Core inflation inched down from 2.2% in March to 2.1% in April.
Although the Federal Reserve targets an alternative measure of inflation—called the personal consumption expenditures price index—U.S. monetary authorities also follow closely the core inflation measure in judging whether inflationary pressures are raising in the economy.
Author: Ricardo Aceves, Senior Economist