The US Bureau of Labor Statistics reported that consumer prices rose 0.6 percent in April, the biggest monthly increase since November 2023. The increase was due in large part to higher energy prices. Gasoline prices rose 10.3% over the month, and fuel oil prices increased 8.3%. Other energy commodities, such as electricity, natural gas, and fuel wood, also showed substantial increases. Food prices also rose 0.2%. Core inflation, which does not include volatile food and energy prices, rose 0.4% in April.
The report shows that the overall cost of living increased by 4.2% in the last 12 months. This is the highest 12-month reading since January 2013. The core reading, however, was slightly lower at 3.0%.
The news was not entirely unexpected as the economy continues to rebound from the impact of the pandemic. Rising prices point to an improving job market, higher wages, and more spending. The Federal Reserve has said it will not be raising interest rates in the near future as it aims to keep inflation under control.