Published: Fri, May 11, 2018
Economy | By Shawn Conner

Consumer Prices Rose 0.2% in April

Consumer Prices Rose 0.2% in April

They note that the Trump administration's announcement this week that it was re-imposing sanctions on Iran could cause a spike in global oil prices at a time when low USA unemployment could trigger rising wage pressures.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in April on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today.

In the 12 months through April, the CPI increased 2.5 per cent, the biggest gain since February 2017, after rising 2.4 per cent in the comparable period in March.

Excluding food and energy, the more volatile components of CPI, the index rose just 0.1 percent.

U.S. imposes sanctions on three Venezuelans under drug kingpin rules
The Venezuelan government has refused to allow worldwide aid, alleging that would amount to foreign intervention. Maduro blames the situation on USA sanctions and an "economic war" waged by the opposition.

U.S. Treasury yields fell on Thursday as a smaller-than-expected increase in the consumer price index in April reduced fears that domestic inflation is picking up steam as the labor market tightens. The US Federal Reserve tracks a different inflation measure, which is now flirting with the Fed's 2% target. In April, gasoline prices jumped 3.0 percent, even as other energy costs went down. The rise in oil prices this week on the back of President Donald Trump's announcement he would pull out of the Iran nuclear deal drove up Treasury yields this week ahead of the CPI report.

Food prices rose 0.3% last month after nudging up 0.1% in March. Economists were expecting to see a 0.2% rise in price pressures. Prices for both food at home grew 0.3%, while food away from home rose 0.2%. Hotel and motel rates, which had posted an outsize gain in March, rose 0.8% in April.

Among the categories where prices declined were airfares, new and used cars and trucks, and recreation. Average weekly earnings, also taking into account inflation, fell 0.1% last month.

US consumer prices rose less than expected in April, suggesting that inflation was increasing at a moderate pace, which could allow the Federal Reserve to continue gradually raising interest rates. Claims dropped to 209,000 during the week ended April 21, which was the lowest level since December 1969.

Apple plans Amazon-style distribution strategy
Sales of its Apple TV box meanwhile trail those of rivals including Roku, Google Chromecast and Amazon Fire TV in the US. Apple declined to comment on the project.

The labour market is considered to be near or at full employment, leading to a slowdown in job growth as employers struggle to find skilled workers.

Competition for workers is expected to push up wage increases, which have remained moderate. The cost of motor vehicle insurance fell for the first time in a year.

Hiring slowed in March and April after surging in February. The jobless rate is within striking distance of the Fed's forecast of 3.8 per cent by the end of this year.

Eden Hazard Responds to Fan's 'Come to United' Plea
Chelsea will now face Manchester United in the FA Cup final next Saturday which could salvage some glory for them this season. Hazard is the club's top scorer this season with 12 Premier League goals in addition to four assists.

Like this: