The latest Commerce Department report indicates that inflation continued to affect consumers in April, rising to 3.3%, the highest since May 2023.
The personal consumption expenditures price index increased by 0.4% in the latest month after seasonal adjustments, resulting in a 12-month inflation rate of 3.8%.
Excluding food and energy, core prices increased 0.2% for the month and 3.3% for the year, compared to estimates of 0.3% and 3.3%.
Goods prices increased by 0.7% in April, driven again by gasoline, which surged 5.5%. Services prices went up 0.3%, including a 0.6% rise in the housing and utilities sector and a 0.5% increase in food services and accommodations.
Housing prices broadly increased 0.5%.
The Commerce Department also announced that first-quarter GDP growth was lower than expected, rising at an annualized rate of just 1.6%.
Although the Q1 GDP reading was modest, the department noted a 0.5% rise in consumer spending in April, matching expectations.
Consumers’ incomes remained flat for the month; disposable (after-tax) income declined by 0.1%, and inflation-adjusted disposable income decreased by 0.5%.
By CEO NA Editorial Staff
