Inflation Barreled Ahead at 8.3% in April From a Year Ago, Remaining Near 40-Year Highs

Tiger Newspress2022-05-11

KEY POINTS

  • The consumer price index accelerated 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years.
  • Core CPI, which excludes food and energy, also was higher than expected, rising 6.2%.

Inflation rose again in April, continuing a climb that has pushed consumers to the brink and is threatening the economic expansion, the Bureau of Labor Statistics reported Wednesday.

The consumer price index, a broad-based measure of prices for goods and services, increased 8.3% from a year ago, higher than the Dow Jones estimate for an 8.1% gain.

Removing volatile food and energy prices, so-called core CPI still rose 6.2%, against expectations for a 6% gain.

Inflation has been the single biggest threat to a recovery that began early in the pandemic and saw the economy in 2021 stage its biggest single-year growth level since 1984. Rising prices at the pump and in grocery stores have been one problem, but inflation has spread beyond those two areas into housing, auto sales and a host of other areas.

Federal Reserve officials have responded to the problem with two interest rate hikes so far this year and pledges of more until inflation comes down to the central bank’s 2% goal. However, Wednesday’s data shows that the Fed has a big job ahead.

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Comments

  • Jess261
    2022-05-12
    Jess261
    Ok
  • Daddynsg
    2022-05-12
    Daddynsg
    Help la
  • Daddynsg
    2022-05-12
    Daddynsg
    Like Neo k 
  • Sunshine_2
    2022-05-12
    Sunshine_2
    OK
  • PearlynCSY
    2022-05-12
    PearlynCSY
    April’s consumer price index showed an 8.3% jump, higher than the 8.1% increase expected by economists polled by Dow Jones. The price surge remained near the 40-year high pace of 8.5% seen in March. Not all analysts are convinced the data suggests inflation has reached a peak. Some analysts see the data as a sign that the Fed is behind the curve in curbing inflation, which could put pressure on the central bank to act more aggressively in tightening monetary policy. The initial negative market reaction to the inflation print was “totally understandable,” but as prices continue to rise, the U.S. is on the brink of a “cost of living crisis,” Allianz chief economic advisor Mohamed El-Erian told CNBC’s “Squawk on the Street.”
  • Mm101
    2022-05-12
    Mm101
    H
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