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US Consumer Prices Rise on Food and Gasoline

Friday, 13 May 2011 08:36 AM

WASHINGTON, May 13 (Reuters) - U.S. consumer prices rose as expected in April on higher food and energy prices, but continued to exhibit little sign of a broader pick-up inflation that 2003793260

The Labor Department said its Consumer Price Index increased 0.4 percent after rising 0.5 percent in March. Economists polled by Reuters had expected a 0.4 percent rise last month.

Core CPI -- excluding food and energy - gained 0.2 percent after edging up 0.1 percent in March and in line with economists expectations. The monthly increase in core CPI has been 1651471726

The core reading is closely watched by the U.S. central bank as a guide to monetary policy.

Fed officials believe high commodity prices, which undercut economic growth in the first quarter, will not have a lasting effect on inflation.

Gasoline prices accounted for almost half of the rise in overall consumer inflation last month, advancing 3.3 percent. The pace of increase, however, slowed from Marchs 5.6 percent rise.

Food prices rose 0.4 percent after increasing 0.8 percent in March.

Rising costs for housing, new vehicles, used trucks and medical costs bumped up core inflation last month. Shelter costs, which account for about 40 percent of core CPI, rose 0.1 percent, 1919513449

Prices for new vehicles rose 0.7 percent last month, likely reflecting tight inventories as a shortage of parts in the wake of the devastating earthquake and tsunami in Japan disrupts 1886547812

Apparel prices rebounded 0.2 percent from a 0.5 percent fall in March.

In the 12 months to April, core CPI rose 1.3 percent after increasing 1.2 percent in March. Fed officials, however, would like to see that closer to 2 percent.

Overall consumer prices rose 3.2 percent year-on-year after rising 2.7 percent in March.

(Reporting by Lucia Mutikani, Editing by Andrea Ricci)

© 2017 Thomson/Reuters. All rights reserved.

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WASHINGTON, May 13 (Reuters) - U.S. consumer prices rose as expected in April on higher food and energy prices, but continued to exhibit little sign of a broader pick-up inflation that 2003793260The Labor Department said its Consumer Price Index increased 0.4 percent after...
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