USA-Stronger than expected increase in consumer prices in April – 05/11/2022 at 15:21

(updated with details)

WASHINGTON, May 11 (Reuters) – U.S. consumer price inflation slowed markedly in April on lower gasoline prices, but excluding energy and food inflation continued to pick up. accelerating, above economists’ expectations, suggesting the slowdown is temporary, official statistics showed on Wednesday.

The consumer price index (CPI) decelerated to 0.3% last month, its slowest pace since last August, after jumping 1.2% in March, which was the biggest rise since September 2005, the Labor Department announced. Over one year, the CPI posted a slowdown to 8.3% after an 8.5% gain in March.

Economists polled by Reuters on average forecast a 0.2% increase month-on-month and an 8.1% rise year-on-year.

With gasoline accounting for the bulk of the decline in the monthly inflation rate, the deceleration recorded by the CPI is likely temporary, with prices at the pump rebounding to around $4.161 a gallon at the start of the week after falling below $4 in April, according to data from the US Energy Information Agency (EIA).

In addition, although this is the first year-on-year CPI slowdown since last August, April marks the seventh consecutive month of inflation above 6%, which could lead the Federal Reserve to accelerate its rate hike. of interest next month.

The CPI index, excluding energy and food products, known as core inflation (“core CPI”), for its part, increased by 0.6% over one month after rising 0.3% in March.

Over one year, the increase stands at 6.2% after a gain of 6.5% in March, which was the strongest increase since August 1982.

The consensus for the CPI “core” index predicted an increase of 0.4% over one month and 6.0% on an annual basis.

On Wall Street, index futures, which were quoted higher, turned lower after the release of this indicator, losing 0.6% to 1%.

(Report Lucia Mutikani; French version Claude Chendjou, edited by Kate Entringer and Jean-Michel Bélot)

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