The United States Bureau of Labor Statistics has disclosed in a report that the country’s inflation for the month of April fell marginally to 8.3%, but was still close to March’s 40-year high of 8.5%.
Parts of the report read “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis after rising 1.2 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.3 percent before seasonal adjustment.”
“Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9 percent over the month as the food at home index rose 1.0 percent. The energy index declined in April after rising in recent months.“
Despite the fact that the consumer price index declined for the first time in eight months; a step down from the 8.5% gain in March, it was somewhat higher than FT economists’ predictions of an 8.1% rise.
The index for full-service meals rose by 7.2% which means Americans will have to pay more when they eat out.
Also in April, the index for all items excluding food and energy increased by 0.6%. Medical care, recreation, and household furnishings and operations all grew in April, as well as indexes for lodging, airline prices, and new automobiles.
The indices for clothes, communication, and used cars and trucks dropped in April.
Over the last year, the energy index went up by 30.3%. The electricity index increased by 11.0%, while the natural gas index rose by 22.7%.
In response, the Federal Reserve has raised interest rates for the first time in more than twenty years this month in a bid to keep pricing pressures in check. It will also commence reducing its $9 trillion balance sheet in June.