The Labor Department said Thursday, higher food and gas costs pushed up U.S. consumer prices in April by the most in 10 months, evidence that inflation is ticking up from very low levels. The consumer price index rose 0.3% last month after a 0.2% gain in March. Over the past 12 months, prices have increased 2%, the largest gain since July and matching the Federal Reserve’s inflation target. Excluding the volatile food and energy categories, core prices rose 0.2% in April and have risen 1.8% in the past 12 months.
The indexes for gasoline, shelter, and food all rose in April and contributed to the seasonally adjusted all items increase. The gasoline index rose 2.3%; this led to the first increase in the energy index since January, despite declines in the electricity and fuel oil indexes. The food index rose 0.4% for the third month in a row, as the index for meats rose sharply.
The index for all items less food and energy rose 0.2% in April, with most of its major components posting increases, including shelter, medical care, airline fares, new vehicles, used cars and trucks, and recreation. The indexes for apparel, household furnishings and operations, and personal care were all unchanged in April.
The all items index increased 2.0% over the last 12 months; this compares to a 1.5% percent increase for the 12 months ending March, and is the largest 12-month increase since July.