Headline prices rose at the slowest annual rate since the period to April 2021, while April consumer prices showed inflationary pressures were still building in the U.S. economy.
according to latest data The Consumer Price Index (CPI), released Wednesday morning, showed headline inflation rose 0.4% month-on-month and 4.9% year-on-year in April., While it has accelerated from March’s 0.1% month-on-month increase, it has slowed slightly from March’s annual increase of 5%.
Both measures were broadly in line with economists’ forecasts of a 0.4% increase month-over-month and a 5.0% annual growth rate, according to Bloomberg data.
The 4.9% annualized increase is lower than March’s gain, but still well above the Federal Reserve’s 2% target.
On a ‘core’ basis, which excludes more volatile food and gas costs, March prices were 0.4% higher than the previous month and 5.5% higher than last year. Both indicators were in line with economists’ expectations, according to Bloomberg data.
Core inflation was particularly strong last month as rents surged. The April rent index and owner-equivalent rent index rose 0.6% and 0.5%, respectively. Owner’s equivalent rent is the rent assumed to be paid by the homeowner.
The shelter index increased by 8.1% from last year, accounting for more than 60% of the total increase for all items except food and energy.
US stocks rose in pre-market trading after the data was released.
Alexandra Canal Senior reporter at Yahoo Finance. follow her on her twitter @alliecanal8193 Send an email to [email protected].
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