With energy prices surging, the Labor Department released a report on Tuesday showing consumer prices in the US increased in line with economist estimates in the month of April.
The Labor Department said its consumer price index climbed accelerated to 3.8% in April from 3.3% in March, which was also in line with estimates. On a monthly basis it grew by 0.6% in April after advancing by 0.9% in March.
When food and energy prices are excluded, the annual rate of growth by core consumer prices accelerated to 2.8% in April from 2.6% in March, coming in slightly above estimates for a 2.7% jump.
The monthly increase in consumer prices largely reflected the extended surge in energy prices, which shot up by 3.8% in April after soaring by 10.9% in March.
Prices for petrol spiked by 5.4% in April after skyrocketing by 21.2% in the previous month.
Prices for shelter grew by 0.6% during the month, while prices for household furnishings and operations, airline fares, personal care, apparel, and education also increased.
Meanwhile, the report said prices for new vehicles, communication, and medical care were among those that decreased in April.
"While the core CPI will remain elevated this year, it's unlikely to move significantly higher from here," said Bernard Yaros, Lead US Economist at Oxford Economics.
He added, "Energy-driven cost increases will spill over to the core CPI, but these effects will be tempered by ongoing housing disinflation, a lukewarm labor market, and fading tariff effects."
