Inflation Reaccelerates in April as Energy, Shelter Costs Drive CPI Higher

The Consumer Price Index increased 0.6% on a seasonally adjusted basis in April, following a 0.9% rise in March, according to the U.S. Bureau of Labor Statistics. On a year-over-year basis, headline inflation climbed 3.8%.

Energy prices were the largest contributor to the monthly gain, with the energy index rising 3.8% in April and accounting for more than 40% of the increase in the all-items index. Shelter costs also remained elevated, increasing 0.6%.

Food prices moved higher as well, with the food index rising 0.5% in April. The index for food at home increased 0.7%, while food away from home advanced 0.2%.

Core inflation, which excludes volatile food and energy prices, rose 0.4% in April. On an annual basis, core CPI increased 2.8%, up from the 2.6% pace recorded in March.

Several categories posted notable monthly increases, including household furnishings and operations, airline fares, personal care, apparel and education. Meanwhile, prices for new vehicles, communication services and medical care declined during the month.

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Bureau of Labor Statistics

About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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