Inflation as gauged by the consumer price index was expected to rise 8.1% year over year in April, according to Dow Jones estimates.
Highlights
- Consumer price index rose 8.3% from a year ago, higher than the Dow Jones estimate for an 8.1% gain.
- Core CPI still rose 6.2%, against expectations for a 6% gain, clouding hopes that inflation had peaked in March.
- Inflation has been the single biggest threat to a recovery that began early in the Covid pandemic.
- Rising prices at the pump and in grocery stores have been one problem, but inflation has spread beyond those two areas into housing, auto sales and a host of other areas.
- Federal Reserve officials have responded to the problem with two interest rate hikes so far this year and pledges of more until inflation comes down to 2% goal.