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The
Labor Department said on Friday its Consumer Price Index slipped
0.1 percent last month after increasing 0.2 percent in March. In
the 12 months through April, the CPI fell 0.2 percent, the
largest decline since October 2009, after dipping 0.1 percent in
March.
Economists polled by Reuters had forecast the CPI edging up 0.1
percent from March and dipping 0.1 percent from a year ago.
The so-called core CPI, which strips out food and energy costs,
increased 0.3 percent, the largest gain since January 2013,
after advancing 0.2 percent in March.
In the 12 months through April, the core CPI rose 1.8 percent
after a similar gain in March.
The upward thrust in core inflation should keep the U.S. central
bank on track to tighten monetary policy this year, despite what
appears to be sluggish economic growth in the first half of the
year.
A recent batch of weak data, including April industrial
production and retail sales, has left many economists even
doubting that the Fed will raise rates in September. The central
bank, which has a 2 percent inflation target, has kept overnight
interest rates near zero since December 2008.
Gasoline prices fell 1.7 percent in April after increasing 3.9
percent in March. Food prices were unchanged after slipping 0.2
percent in March.
Elsewhere, shelter costs increased 0.3 percent after a similar
gain in March. Shelter inflation could continue to rise in the
months ahead as rising household formation pushes down rental
vacancies.
The medical care index rose 0.7 percent, the largest rise since
January 2007. There were also increases in the cost of household
furnishings, which posted their largest gain since September
2008.
(Reporting by Lucia Mutikani; Editing by Paul Simao) ((Lucia.Mutikani@thomsonreuters.com;
1 202 898 8315; Reuters Messaging:
lucia.mutikani.thomsonreuters.com@reuters.net)
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