U.S. Consumer Prices Increase 0.6% In April, In Line With Estimates

(RTTNews) - With energy prices surging, the Labor Department released a report on Tuesday showing consumer prices in the U.S. increased in line with economist estimates in the month of April.

The Labor Department said its consumer price index climbed by 0.6 percent in April after advancing by 0.9 percent in March. The growth matched expectations.

The report also said the annual rate of growth by consumer prices accelerated to 3.8 percent in April from 3.3 percent in March, which was also in line with estimates.

The monthly increase in consumer prices largely reflected the extended surge in energy prices, which shot up by 3.8 percent in April after soaring by 10.9 percent in March.

Prices for gasoline spiked by 5.4 percent in April after skyrocketing by 21.2 percent in the previous month.

The Labor Department said prices for food also climbed 0.5 percent in April after coming in unchanged in March.

Excluding food and energy prices, the core consumer price index rose by 0.4 percent in April after inching up by 0.2 percent in March. Economists had expected core prices to increase by 0.3 percent.

The annual rate of growth by core consumer prices accelerated to 2.8 percent in April from 2.6 percent in March, coming in slightly above estimates for a 2.7 percent jump.

Prices for shelter grew by 0.6 percent during the month, while prices for household furnishings and operations, airline fares, personal care, apparel, and education also increased.

Meanwhile, the report said prices for new vehicles, communication, and medical care were among those that decreased in April.

"While the core CPI will remain elevated this year, it's unlikely to move significantly higher from here," said Bernard Yaros, Lead U.S. Economist at Oxford Economics.

He added, "Energy-driven cost increases will spill over to the core CPI, but these effects will be tempered by ongoing housing disinflation, a lukewarm labor market, and fading tariff effects."

The Labor Department is scheduled to release a separate report on producer price inflation in April on Wednesday. Producer prices are expected to increase by 0.5 percent for the third straight month.