A measure of inflation that is closely tracked by the Federal Reserve increased in April
A key index of U.S. prices ticked higher in April as consumer spending rebounded, a sign that inflationary pressures in the economy remain high
By CHRISTOPHER RUGABER
Published - May 26, 2023, 08:40 AM ET
Last Updated - Jun 21, 2023, 03:40 PM EDT
WASHINGTON (AP) — A key index of U.S. prices ticked higher in April as consumer spending rebounded, a sign that inflationary pressures in the economy remain high.
The index, which the Federal Reserve closely monitors, showed that prices rose 0.4% from March to April, much higher than the 0.1% increase the previous month. Measured year over year, prices were up 4.4% last month, up from 4.2% in March.
The year-over-year figure was down sharply from a peak of 7% last June yet remains far above the Fed's 2% inflation target, and it surpassed the 4.2% figure in March.
Consumers kept spending last month despite the price rise: Their spending jumped 0.8% from March to April.
