US consumer inflation surges in April

[WASHINGTON] US consumer prices accelerated in the year to April, with a measure of underlying inflation blowing past the Federal Reserve's 2 per cent target, reflecting pent-up demand as the economy reopens, supply constraints and technical factors.

Consumer prices as measured by the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 0.7 per cent last month after gaining 0.4 per cent in March, the Commerce Department said on Friday. In the 12 months through April, the so-called core PCE price index vaulted 3.1 per cent. That followed a 1.9 per cent year-on-year gain in March.

Economists polled by Reuters had forecast the core PCE price index rising 0.6 per cent in April and surging 2.9 per cent year-on-year. The core PCE price index is the Fed's preferred inflation measure.

REUTERS