The consumer price index CPI rose 0.3% on April, the smallest monthly gain since last August, the Labor Department reported. Results contrast to the 1.2% month-to-month surge in the CPI in March, which was the largest advance since September 2005.
The CPI increased 8.3% from a year ago, higher than the Dow Jones estimate for an 8.1% gain. Despite results are bellows March’s peak, they are still close at levels reported in 1982 suggesting that high inflation might not end soon.
The 8.3% increase is the seventh straight month of increases above 6%.
According to analysts increasing prices will keep going for a while as the Federal Reserve moves faster to fight inflation levels not seen in 40 years. Last week the Fed raised its interest rate by half a percentage point, the biggest hike in 22 years.
“We’re starting to see energy pull back a little bit, but it’s not enough,” said Kathy Jones, chief fixed income strategist at Charles Schwab according to CNBC. “The markets were hoping for a better number and it’s not good enough to rule out more Fed tightening.”
Removing volatile food and energy prices, CPI still rose 6.2% against the 6% gain forecasted. According to the Energy Information Administration gasoline prices are rising again over $4.1 per gallon early this week, after dropping below $4 in April.
Russia’s war against Ukraine will add further stress to international gasoline prices and to higher global inflation.