Inflation Shot Up in April to Fastest Pace Seen in More Than Three Years
Posted By Ali Meyer On May 17, 2016 @ 3:26 pm In Issues | No Comments
Inflation increased in April to the fastest pace seen in more than three years, MarketWatch reported.
According to the Bureau of Labor Statistics, the consumer price index increased by 0.4 percent in April, the biggest gain since February 2013.
“More than half of the rise in consumer inflation stemmed from a recent bump in the cost of gasoline,” explains the article. “Rent was another major contributor, accounting for about one-fourth of the increase.”
“Food prices also rose 0.2% last month, though the cost of groceries has fallen in the past year,” the article states. “Stripping out food and energy, so-called core consumer prices rose 0.2% in April. The cost of rent increased 0.3%, as did medical care. Drug prices rose even faster and car insurance became more costly.”
According to economists surveyed by the Wall Street Journal, the consumer price index was projected to increase by 0.3 percent.
“Overall core-services inflation continues to gradually firm, and we expect further firming this year,” said Michael Gapen, a chief economist at Barclays. “We view this rise in inflation as consistent with our view that reduced slack in the U.S. economy will continue to put upward pressure on prices.”
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