Ostensibly, inflation in the United States is inching ever so closer to the Federal Reserve’s target as the cost living in April, omitting food and energy, rose at the fastest pace in about two years.
The core consumer price index jumped 0.3 percent last month, which is the biggest increase since Jan. 2013, according to a new report from the Department of Labor. This exceeded many economists’ expectations of 0.3 percent.
Meanwhile, food and fuel prices picked up by 0.1 percent. Gains in the core index were led by significant increases in prices for rent, medical care and used cars and trucks. Medical care highlighted the largest increase since Jan. 2007.
Energy costs tumbled 1.3 percent in April, while food costs remained relatively unchanged. This is apparently somewhat helping households’ purchasing power.
Hourly wages adjusted for inflation were able to climb 2.3 percent over the past 12 months on average.
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