Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Consumer Prices in U.S. Increase by Most Since 2009

Published 2021-05-12, 08:47 a/m
Updated 2021-05-12, 08:47 a/m
© Bloomberg. Shoppers wear protective masks inside the Glendale Galleria shopping mall in Glendale, California, U.S., on Thursday, May 6, 2021. Los Angeles County and San Francisco County have reached a threshold to enter California’s most lenient yellow Covid-19 tier this week, setting the stage for the economy to be unshackled to the widest extent currently possible. Photographer: Bing Guan/Bloomberg

© Bloomberg. Shoppers wear protective masks inside the Glendale Galleria shopping mall in Glendale, California, U.S., on Thursday, May 6, 2021. Los Angeles County and San Francisco County have reached a threshold to enter California’s most lenient yellow Covid-19 tier this week, setting the stage for the economy to be unshackled to the widest extent currently possible. Photographer: Bing Guan/Bloomberg

(Bloomberg) -- U.S. consumer prices climbed in April by the most since 2009, amid a record increase in used-car costs and signaling a build-up in inflationary pressures as burgeoning demand gives companies latitude to pass on higher costs.

The consumer price index increased 0.8% from the prior month after a 0.6% gain in March, according to Labor Department data Wednesday. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.

The median forecasts in a Bloomberg survey of economists called for a 0.2% in the CPI and a 0.3% gain in the core measure.

The annual CPI figure surged to 4.2%, distorted by the comparison to the pandemic-depressed index in April 2020. This phenomenon -- known as the base effect -- will skew the May figure as well, likely muddling the ongoing inflation debate.

While Federal Reserve officials and economists acknowledge the temporary boost, it’s unclear whether a more durable pickup in inflationary pressures is underway against a backdrop of soaring commodities costs, trillions of dollars in government economic stimulus and incipient signs of higher labor costs.

The core CPI measure, which was also biased higher by the base effect, rose 3% from 12 months ago. For the last year the annual core inflation metric has held below 2%.

Wednesday’s report offers insight into bubbling price pressures across parts of the economy. Wages have shown signs of picking up, and supply chain challenges have elongated delivery times and driven materials prices higher.

©2021 Bloomberg L.P.

© Bloomberg. Shoppers wear protective masks inside the Glendale Galleria shopping mall in Glendale, California, U.S., on Thursday, May 6, 2021. Los Angeles County and San Francisco County have reached a threshold to enter California’s most lenient yellow Covid-19 tier this week, setting the stage for the economy to be unshackled to the widest extent currently possible. Photographer: Bing Guan/Bloomberg

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.