US Consumer Inflation Misses Expectations In April
Consumer prices in the US rose less than expected in April. Data from the US Labor Department showed that the consumer price index rose by 0.2% in April after a decline of 0.1% in March. On an annual basis, consumer prices rose by 2.5% (the highest since February 2017), after rising 2.4% in March.
Core CPI, a key gauge of underlying consumer price pressures that excludes food and energy costs, rose 2.1% year-on-year. Economists awaited for a gain of 2.2%. Month-on-month, CPI rose 0.2%, against forecasts for a reading of 0.3%, while core CPI rose 0.1% from a month earlier. Economists predicted that the consumer price index will recover by 0.3% in April, and Core consumer price index by 0.2%.
Food prices increased by 0.3% last month after nudging up 0.1% in March. Healthcare costs rose by 0.1% after advancing 0.4% in March. The cost of recreation dropped by 0.4% in April (the biggest decline since December 2009). Apparel prices grew by 0.3% in April after falling 0.6% in March.