Inflation increases 3.4% in April as prices remain elevated
Bolvin Wealth Management Group President Gina Bolvin discusses the move in commodities, expected inflation data, the housing industry and her outlook for consumers.
Inflation eased slightly in April for the first time in months, a welcome sign for the Federal Reserve even as prices remained uncomfortably high for millions of Americans.
The Labor Department said Wednesday that the consumer price index, a broad measure of how much everyday goods like gasoline, groceries and rent cost, rose 0.3% in April from the previous month. Economists expected to see a 0.4% monthly increase. Prices climbed 3.4% from the same time last year, down from the 3.5% reading in March.
Another data point that measures underlying inflationary pressures within the economy also moderated last month. So-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends, increased 0.3% in April. From the same time last year, the gauge climbed 3.6% – the lowest reading since 2021.
WHY ARE GROCERIES STILL SO EXPENSIVE?
Altogether, the report indicates that while inflation has fallen considerably from a peak of 9.1%, it remains well above the Fed's 2% target.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly devastating for lower-income Americans, because they tend to spend more of their already-stretched paycheck on necessities and therefore have less flexibility to save money.
AMERICANS ARE CARRYING A RECORD AMOUNT OF HOUSEHOLD DEBT
Housing and gasoline costs were once again the biggest drivers of inflation last month, accounting for more than 70% of
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