In April 2021, consumer prices in the United States recorded the largest increase in the last almost 12 years.
This was due to an explosive strengthening of demand in conditions of limited supply, which could further inflame fears in the financial market from a longer period of higher inflation.
The US Department of Labor announced today that inflation jumped by 0.8 percent on a monthly basis in April, after a growth of 0.6 percent in March. That is the biggest monthly increase since June 2009, Reuters reports.
The rise in prices of used cars and trucks of 10 percent contributed with over one third of the increase in the consumer price index last month. Motor vehicle production has slowed due to a global shortage of semiconductors, which has boosted demand for used cars.
Food prices in the U.S. rose 0.4 percent in April, while gasoline prices fell 1.4 percent after rising 9.1 percent in March. However, the price of gasoline will probably go up again in May, because the pumps across the country are already running out of fuel after the partial closure of the Colonial Pipeline pipeline after the hacker attack on that company last Friday.
On an annual basis, inflation rose by 4.2 percent in April, the most since September 2008, which is partly attributed to last year’s low comparative base.
Excluding volatile food and energy prices, core inflation in the United States rose 0.9 percent last month, its biggest monthly increase since April 1982. Year-on-year, core inflation jumped 3.0 percent, after growth of 1.6 percent in March.
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