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Consumer prices spiked sharply in April, according to new data released Wednesday by the Department of Labor.<\/p>\n
The consumer price index, a barometer that measures what consumers pay for everyday goods and services, jumped by 4.2% in the year through April, the DOL said. It rose by 0.8% in April alone.<\/p>\n
This marks the largest one-year increase seen since September 2008.<\/p>\n
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Prices for used vehicles skyrocketed by 10% in April, marking the largest 1-month increase since record-keeping for the series began in 1953. This was fueled in part by a global chip shortage and served as a significant contributor to the overall consumer prices increase.<\/p>\n
Meanwhile, the food index increased 0.4% in April, the DOL said. Prices of energy decreased by a fraction of a percentage point — though this will likely change as the Colonial Pipeline situation continues to unfold.<\/p>\n
The core index, which excludes volatile food and energy indexes, jumped by 3% over the past 12 months and 0.9% in April alone.<\/p>\n
The closely watched data comes amid mounting fears of inflation from investors, but also reflects unique factors as the pandemic recovery is finally gaining steam.<\/p>\n
While the consumer price increase is higher-than-expected, it will take months to gain a fuller picture as to what the impact of inflation on a pandemic-battered economy will be. A confluence of pent-up demand, easing restrictions and pandemic stimulus programs likely contributed to figures released Wednesday.<\/p>\n
Futures on the Dow Jones Industrial Average dipped following the release of the data, pointing to opening losses as investors grapple with concerns over inflation.<\/p>\n