Consumer prices post largest gain in 3 years

Washington

US consumer prices recorded their biggest increase in more than three years in April as petrol and rents rose, pointing to a steady inflation build-up that could give the Federal Reserve ammunition to raise interest rates later this year.

Other data on Tuesday showed housing starts rose more than expected last month, with builders ramping up the construction of single and multi-family homes, suggesting the economy was regaining steam early in the second quarter.

The Labor Department said its Consumer Price Index (CPI) increased 0.4 per cent last month, the largest gain since February 2013, after rising 0.1 per cent in March. That took the year-on-year increase in the CPI to 1.1 per cent fr…