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U.S. consumer prices rose 4.2% in April from a year ago, faster than expected

Tiger Newspress2021-05-12

(May 12) Inflation accelerated at its fastest pace in more than 12 years for April as the U.S. economic recovery kicked into gear and energy prices jumped higher, the Labor Department reported Wednesday.

The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, against the expected 0.2%.

Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis. The respective estimates were 2.3% and 0.3%.

The increase in the headline CPI rate was the fastest since September 2008.

In addition to rising prices, one of the main reasons for the big annual gain was because of base effects, meaning inflation was very low at this time in 2020 as the Covid-19 pandemic caused a widespread shutdown of the U.S. economy. Year-over-year comparisons are going to be distorted for a few months because of the pandemic’s impact.

For that reason, Federal Reserve policymakers and many economists are dismissing the current round of numbers as transitory, with the expectation that inflation settles down later this year around the 2% range targeted by the central bank.

Price surges also have come amid supply bottlenecks caused by a number of factors, from production issues with the ubiquitous semiconductors found in electronics products to the Suez Canal blockage in March to soaring demand for a variety of commodities.

Lumber prices alone have risen 124% in 2021 amid persistent demand for building materials. Gasoline prices are up more than 27% nationwide, while copper, often seen as a proxy for economic activity, has jumped nearly 36%.

Still, Fed officials repeatedly have said they will not raise interest rates or pull back on monthly bond purchases until inflation averages around 2% over an extended period.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment29

  • AnaiAnai
    ·2021-05-13
    rate hike soon?
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    • 超群yibo
      not soon
      2021-05-17
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    • TTH4Legs
      Not this year
      2021-05-13
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  • iamjingxian
    ·2021-05-13
    nice 
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  • maerc19
    ·2021-05-13
    Hmm
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  • mcwood
    ·2021-05-12
    [得意] 
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  • ONG
    ·2021-05-12
    Don't waste time on this fucking news
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  • Huatahhuat
    ·2021-05-12
    The increase in the headline CPI rate was the fastest since September 2008.
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  • Mojojo
    ·2021-05-12
    Should I just uninstall the app until June before I faint further checking my p&l?
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    • Mojojo
      it's a good day today
      2021-05-13
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    • tungngie
      tell yourself the drop is temporary, biz fundamental no change. go go. [胜利]
      2021-05-13
      Reply
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    • Louisyeo
      Better to delete. More u see more u cant sleep
      2021-05-12
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  • Bodoh
    ·2021-05-12
    The inflation bogeyman strikes again!
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  • MajorJackpot
    ·2021-05-12
    Ayo ... Here we go again ... Down?
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  • Heokbt
    ·2021-05-12
    Wow over estimate
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  • AlphaSpiker
    ·2021-05-12
    這還是新聞嗎?拿點新鮮事情來吹吧
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  • DragonKC
    ·2021-05-12
    Reports are creating panic in investors.  Sometimes good news,  some bad news. Real direction unclear. Take a break n wait for the smoke to clear. 
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  • 滚筒
    ·2021-05-12
    Inflation focused market now. 
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  • HighOnCoffee
    ·2021-05-12
    gg
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  • Slee49
    ·2021-05-12
    ?
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  • justusdk
    ·2021-05-12
    Life goes on
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  • Mr_9
    ·2021-05-12
    [NosePick] 
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  • RTWL
    ·2021-05-12
    Reply and comment
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    • RTWL
      Reply and comment
      2021-05-12
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  • KK8888
    ·2021-05-12
    yes
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  • Sabniz33
    ·2021-05-12
    Really..Like plz
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    • rDj
      Help to reply to this. thx
      2021-05-12
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