Inflation south of the border accelerated at its fastest pace in more than 12 years for April as the economic recovery in the U.S. kicked into gear and energy prices jumped higher,
Figures released Wednesday by the U.S. Labor Department revealed the Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, against the expected 0.2%.
Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis. The respective estimates were 2.3% and 0.3%.
The increase in the headline CPI rate was the fastest since September 2008.
Energy prices overall jumped 25% from a year ago, including a 49.6% increase for gasoline and 37.3% for fuel oil. Used car and truck prices, which are seen as a key inflation indicator, surged 21%, including a 10% increase in April alone.
In addition to rising prices, one of the main reasons for the big annual gain was because of base effects, meaning inflation was very low at this time in 2020 as the COVID-19 pandemic caused a widespread shutdown of the U.S. economy. Year-over-year comparisons are going to be distorted for a few months because of the pandemic’s impact.
