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+6.2%

without

food and

energy

Year-over-year percent change

in the Consumer Price Index

+6.2%

without food

and energy

Year-over-year percent change in the Consumer Price Index



The pressures that have kept inflation elevated for months remain strong, fresh data released Wednesday showed, a challenge for households that are trying to shoulder rising expenses and for the White House and Federal Reserve as they try to put the economy on a steadier path.

Annual inflation moderated for the first time in months in April, but the Consumer Price Index still increased by 8.3 percent, an uncomfortably rapid pace. At the same time, a closely watched measure that subtracts food and fuel costs actually accelerated.

Core inflation — which excludes costs for groceries and gas — picked up 0.6 percent in April from the prior month, faster than its 0.3 percent increase in March. That measure is particularly important for policymakers, who use it as a gauge to help determine where inflation is headed.

While the letup in annual inflation gave President Biden and the Fed a dose of comfort, the overall picture remains worrying. Policymakers have a long way to go to bring price increases down to more normal and stable levels, and the newest data is likely to keep them focused on trying to slow an inflation rate that remains near its fastest pace in 40 years.

“Inflation is too high — they need to bring it down,” said Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives. “The re-acceleration in core inflation is unwelcome.”

Stocks were turbulent on Wednesday, swinging between gains and losses as investors tried to parse the latest data. The S&P 500 ended the day down 1.6 percent.

Annual inflation may have now peaked, having climbed by an even-quicker 8.5 percent in March. The April slowdown came partly because gas prices dropped lower last month, and partly because of a statistical quirk that will continue through the months ahead. Yearly price changes are now being measured against elevated price readings from last spring, when inflation started to take off. The higher base makes annual increases look less severe.




2022 Consumer Price Index

2022 Consumer Price Index



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Source: https://www.nytimes.com/live/2022/05/11/business/inflation-cpi-report-april

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