US Inflation Rate Rises to 1.1%

Consumer prices in the United States went up 1.1 percent year-on-year in April of 2016, higher than a 0.9 percent rise in the previous month and in line with market expectations. The monthly index rose 0.4 percent, the biggest in three years, led by gains in gasoline prices and rents.

Year-on-year, food inflation accelerated (0.9 percent compared to 0.8 percent in March), prices of services transportation services (3.3 percent from 2.8 percent in March) went up at a faster pace. In contrast, cost of services less energy (3 percent compared to 3 percent in March), namely shelter (3.2 percent compared to 3.2 percent in March) grew at the same pace as in March while medical care inflation slowed (3.1 percent compared to 3.6 percent in March). In contrast, cost of increased at the same pace as in February. Pries of energy shrank 8.9 percent following a 12.6 percent decline in the previous month.

Annual core inflation which excludes food and energy eased for the second straight month to 2.1 percent from 2.2 percent in March.

The monthly index increased 0.4 percent, the biggest rise since early 2013. The food index rose 0.2 percent after declining in March, with the food at home index increasing slightly. The index for energy increased 3.4 percent, with the gasoline index rising 8.1 percent, and the indexes for fuel oil and natural gas also advancing.

The index for all items less food and energy increased 0.2 percent in April. The shelter index rose 0.3 percent, as did the index for medical care, and the indexes for motor vehicle insurance, airline fares, recreation, and education increased as well. Several other component indexes increased slightly, including those for alcoholic beverages, tobacco, and personal care. In contrast, the indexes for household furnishings and operations, apparel, new vehicles, used cars and trucks, and communication all declined.

US Inflation Rate Rises to 1.1%

BLS | Joana Taborda |
5/17/2016 2:01:45 PM