May 15, 2014

Inflation increased 0.3% in April

May 16, 2014 – On a seasonally adjusted basis, overall consumer prices increased 0.3 percent in April as energy and food costs increased, NAFCU's Doug Christman said Thursday.

"The rise in total CPI was a result of increases in both energy and food prices," Christman noted in a NAFCU Macro Data Flash report analyzing data released Thursday by the Bureau of Labor Statistics. For the 12-month period, overall consumer price index growth was 2 percent, up from 1.5 percent in March.

Core prices – excluding food and energy costs – rose 0.2 percent in April month over month, which followed a 0.2 percent increase in March. "Core CPI rose 1.8 percent on a year-over-year basis in April and has remained relatively stable over the last 13 months," Christman said.

Energy prices increased by 0.3 percent in April, following a 0.1 percent decrease in March. From a year ago, energy prices were up 3.3 percent. "Gasoline prices rose 2.3 percent in April and contributed to the first increase in the energy index since January," Christman said.

Food prices increased 0.4 percent in April following an increase of 0.4 percent in March, and were up 1.8 percent on a year-over-year basis.

"Both CPI and Core CPI remain below the Fed's stated inflation target, but are moving closer to their historical normal pace," Christman said.