U.S. consumer prices accelerated in April after months of declines, with measures of core inflation suggesting rising costs could persist in the coming months.
Prices rose 0.4% from March to April, the government said on Wednesday, up from 0.1% from February to March. Compared to a year earlier, prices rose 4.9%, slightly below the year-on-year increase in March.
The country’s inflation rate has cooled steadily since peaking at 9.1% last June, but remains well above the Federal Reserve’s 2% target rate.
The Fed is paying particular attention to so-called core prices, which exclude volatile food and energy costs and are considered a better indicator of long-term inflation trends. Core prices rose 0.4% from March to April, the same as from February to March. It was the fifth month in a row that core prices have risen by 0.4% or more. Increases at this rate are well above the Fed’s 2% target.
Compared to a year ago, core prices rose 5.5%, just below the 5.6% annual increase in March.
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