Consumer prices posted the biggest increase in April since last summer as the cost of many staples rose, making it harder for Americans to stretch their paychecks to pay for typical household expenses.
The consumer price index jumped a seasonally adjusted 0.3% last month to mark the largest gain since June, the Labor Department said . The increase matched the MarketWatch forecast.
Although most economists expect consumer prices to taper off later in the year, they have climbed sharply in the past few months. The pace of inflation rose to 2% from April 2013 to April 2014, up from 1.5% in the prior month.
In April, energy prices rose 0.3%, led by a 2.3% advance in the cost of gasoline.
Food prices rose 0.4%, spearheaded by a 2.9% spike in beef. That was the largest increase in beef prices since 2003.
Excluding the volatile food and energy categories, core consumer prices increased 0.2%. The cost of housing, medical care, airline tickets and new cars all rose.
The core rate has risen 1.8% in the past 12 months, and it’s been stuck between 1.6% and 1.8% for more than a year. That’s well below the level the Federal Reserve considers harmful to the economy, however.
Source: Marketwatch
