MNI DATA BRIEF: US CPI In April Surge, Fastest Pace Since 2008

Monthly CPI growth surged in April, the Bureau of Labor Statistics said Wednesday, with year-over-year headline and core inflation advancing at the fastest pace in roughly a decade.

CPI rose 0.8% in April, much stronger than market expectations for a 0.2% gain. Food prices were up 0.4%, while the energy index fell slightly as the 1.4% decline in gasoline prices more than offset price increases in electricity and gas, the BLS said. From a year earlier, CPI was up 4.2%, the largest increase annual increase since September 2008.

Excluding food and energy, core CPI was up 0.9% in April, the largest monthly increase since 1982, the BLS said. Nearly all major components increased in April, with used vehicles up 10%, the most since 1953, airline fares up 10.2%, and shelter up 0.4%. From a year earlier, core CPI was up 3%, the largest gain since 1996.

The data will resonate with some Federal Reserve officials who have been braced for higher CPI readings over the spring and summer, although perhaps not quite so fast so soon.