31.4 C
New York
Saturday, May 21, 2022

U.S. consumer prices rebound modestly in April

U.S. consumer prices rebound modestly in April© Reuters. FILE PHOTO: A gas pump displays the price for E15 a gasoline with 15 percent of ethanol at a gas station in Nevada

U.S. consumer prices rebounded less than expected in April as rising costs for gasoline and rental accommodation were tempered by a moderation in healthcare prices, pointing to a steady buildup of inflation.

The Labor Department said on Thursday its Consumer Price Index rose 0.2 percent after slipping 0.1 percent in March. In the 12 months through April, the CPI increased 2.5 percent, the biggest gain since February 2017, after rising 2.4 percent March.

Excluding the volatile food and energy components, the CPI edged up 0.1 percent after two straight monthly increases of 0.2 percent. The so-called core CPI rose 2.1 percent year-on-year in April, matching March’s increase.

Economists had forecast the CPI rebounding 0.3 percent in April and the core CPI climbing 0.2 percent.

The Federal Reserve tracks a different inflation measure, which is now flirting with the U.S. central bank’s 2 percent target. The personal consumption expenditures price index excluding food and energy accelerated to 1.9 percent year-on-year in March as last year’s big declines in the price of cell phone service plans dropped out of the calculation.

Economists expect the core PCE price index, which had increased 1.6 percent in February, to breach its target in May.

Gasoline prices rebounded 3.0 percent in April after tumbling 4.9 percent in March.

Further increases are likely after prices jumped to 3-1/2-year highs on Wednesday in the wake of President Donald Trump’s decision on Tuesday to pull the United States out of an international nuclear deal with Iran.

Food prices rose 0.3 percent last month after nudging up 0.1 percent in March. Food consumed at home increased 0.3 percent, the biggest gain since March 2017.

Owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, rose 0.3 percent last month after a similar gain in March.

But healthcare costs nudged up 0.1 percent after advancing 0.4 percent in March, helping to restrain the increase in the core CPI. Prices for used cars and trucks tumbled 1.6 percent in April, the largest drop since March 2009.

The cost of recreation fell 0.4 percent last month, the biggest decline since December 2009. Apparel prices rose 0.3 percent in April after falling 0.6 percent in the prior month.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles