The annual general CPI rate increase was the fastest on record since September 2008.
Photo: Foto-Rabe / Pixabay
As the country’s economic recovery recovers, inflation in April accelerated to its fastest pace in more than 12 years, according to information from the Labor Department. And is that The Consumer Price Index (CPI), which measures the costs of basic goods, as well as energy and housing costs, rose 4.2% compared to the previous year.
It should be noted that a Dow Jones survey predicted that this increase would be only 3.6%, according to CNBC.
Excluding volatile food and energy prices, the CPI increased 3% compared to the same period in 2020 and 0.9% monthly. The forecasts that were had respectively were of only 2.3% and 0.3%.
The increase in the annual general CPI rate was the fastest recorded since September 2008while the monthly increase in inflation was the highest since 1981.
Overall energy prices were up 25% from a year earlier, including a 49.6% increase for gasoline and 37.3% for fuel oil. This occurred despite the fact that most energy categories experienced a decline in April.
Gasoline pump prices, which fell 1.4% in April, have resumed their climb in May, with the national average reaching $ 3 a gallon for the first time since November 2014.. And it is likely to rise further due to Friday’s cyberattack that shut down Colonial Pipeline’s main transmission line from Houston to New Jersey.
On the other hand, the prices of used cars and trucks – which are considered a key indicator of inflation – increased by 21%, including a 10% increase that occurred in April alone. Housing, another key component of the CPI, rose 2.1% year-on-year and 0.4% monthly.
It should be noted that the COVID-19 pandemic caused a widespread closure of business in the US and year-over-year comparisons will be distorted for a few months due to the impact of the pandemic.
For that reason, Federal Reserve lawmakers and many economists are dismissing the numbers that are currently coming in and rather They are considering them only as transitory, with the expectation that inflation will stabilize by the end of this year around the range of 2% predicted by the central bank.
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