US Apr CPI increases 0.3 pc after rising 1.2 pc in March; consumer prices rise 8.3 pc over last 12 months

The annual jump in the consumer price index (CPI) topped in March at 8.5 percent but slowed last month on the back of a drop in energy costs, the Labor Department reported.

Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9 percent over the month as the food at home index rose 1.0 percent.

The index for all items less food and energy rose 0.6 percent in April following a 0.3-percent advance in March. Along with indexes for shelter, airline fares, and new vehicles, the indexes for medical care, recreation, and household furnishings and operations all increased in April.

The indexes for apparel, communication, and used cars and trucks all declined over the month.

The energy index declined 2.7 percent in April after rising 11.0 percent in March.

The gasoline index declined in April, falling 6.1 percent after increasing 18.3 percent the prior month. (Before seasonal adjustment, gasoline prices fell 1.0 percent in April.)

The other major energy component indexes increased in April; the index for natural gas rose 3.1 percent and the index for electricity increased 0.7 percent. 

The energy index rose 30.3 percent over the past 12 months. All the major energy component indexes increased over the year. The gasoline index increased 43.6 percent and the fuel oil index rose 80.5 percent.

The index for electricity rose 11.0 percent, and the index for natural
gas increased 22.7 percent over the last 12 months. 

The index for gasoline fell 6.1 percent over the month, offsetting
increases in the indexes for natural gas and electricity.

Compared to March, CPI rose just 0.3 percent. Food at home jumped 10.8 percent over the last 12 months -- the largest annual increase since November 1980, according to the report.

The index for food away from home rose 7.2 percent over the last year. The index for full-service meals rose 8.7 percent over the last 12 months, the largest 12-month increase since the inception of the index in 1997.

Dairy and cereal products jumped, though fruit and vegetable costs fell.

The index for meat, poultry, fish and eggs surged 14.3 percent in the biggest gain since May 1979.

Despite the fall in gasoline prices, energy costs have risen 30.3 percent over the past 12 months with gasoline prices surging as high as 43.6 percent compared to a year ago.