The Bureau of Labor Statistics recently reported the findings of inflation data in April. Inflation readings reportedly rose again in April, continuing gains that have added pressure on consumers and threatened economic expansion.
The consumer price index (CPI), which measures the prices of goods and services, rose 8.3% from a year ago, higher than what Dow Jones economic analysts estimated which targeted an increase of 8.1%. This reading is slightly lower than the March reading but it is approaching the highest level since the summer of 1982.
The core CPI, which does not take into account food and energy prices, rose 6.2%, compared to expectations of a 6%increase.
Inflation has been the single biggest threat to economic recovery from a pandemic. Rising oil prices and grocery stores have become a major problem, the situation has worsened as rising prices have also affected housing prices, car sales and various other areas.
Federal Reserve officials have responded to the problem with two interest rate hikes so far this year and promised to increase further until inflation drops to the central bank’s 2% target. However, Wednesday’s data shows that the Fed has a big task ahead.
The month -on -month increase was also higher than expected at 0.3% versus the 0.2% estimate and a 0.6% increase for the core, versus the 0.4% survey.
The futures stock market traded lower on Wednesday following the release of inflation data. The S & P500 futures index traded 0.7% lower, the Nasdaq 100 was down 1.1% and the Dow futures were down 170 points.
The US dollar index, which measures the US dollar against six major currencies, strengthened 0.13% to a trading level of 104.118 after the inflation report was released.
