US INFLATION SOARS TO 8.3 PCT IN APRIL, STILL NEAR FOUR-DECADE HIGH

Wed 11 May 2022:

According to the US Labor Department, consumer inflation in April increased by 8.3 percent from a year ago, marking the second consecutive month of inflation above 8%.

According to the Department of Labor’s Bureau of Labor Statistics, the consumer price index (CPI) increased 0.3 percent in April after gaining 1.2 percent in March (BLS).

The CPI rose 8.3% in April compared to the same month a year ago, a little lower increase than the 8.5 percent spike seen in March. The gain in March was the highest in a 12-month period since December 1981.

The so-called core CPI, which excludes food and energy, rose 0.6 percent in April following a 0.3-percent growth the prior month. Core CPI jumped 6.2 percent over the last 12 months, after climbing 6.5 percent in March.

Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all items increase, according to the report.

The food index rose 0.9 percent over the month as the food at home index rose 1.0 percent. The food index climbed 9.4 percent year-on-year, the largest 12-month increase since the period ending April 1981.

The energy index declined by 2.7 percent in April after soaring by 11.0 percent in the previous month. Compared with a year ago, the energy index surged 30.3 percent.

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the Federal Reserve said in a statement after a two-day policy meeting last week.

The Fed noted that the Russia-Ukraine military conflict and related events are creating “additional upward pressure” on inflation and are likely to weigh on economic activity.

The central bank raised its benchmark interest rate by a half percentage point last week, marking the sharpest rate hike since 2000, and signaled it would keep hiking at that pace at the next couple of meetings.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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