Inflation in April was reported to rise at the fastest rate in more than 12 years amid an economic recovery that pushed up prices in goods and energy.
The Consumer Price Index, which measures a group of goods as well as energy and housing costs, rose 4.2% from a year ago, compared to Dow Jones estimates that expect a rise of 3.6%. The monthly increase was 0.8% compared to the expected 0.2%.
The increase in the key CPI rate was the fastest since September 2008. Overall energy prices jumped 25% from last year, including a 49.6% increase for petrol and 37.3% for gasoline.
Prices of used cars and trucks, seen as a key indicator of inflation, jumped 21%, including a 10% increase in April.
One of the main reasons driving up prices is due to policy effects as inflation was at a low level during the pandemic contagion with the closure of the economy. For that reason, Federal Reserve policymakers and many economists chose to examine further inflation developments.
Fed officials have repeatedly said they will not raise interest rates or withdraw monthly bond purchases until inflation is at 2% in the long run.
