US Consumer Price Index for All Urban Consumers (CPI-U) rose to 0.3 per cent in April, following a 0.4 per cent rise in March, according to the latest US Bureau of Labor Statistics report released on Wednesday. Annually, the all-items index surged by 3.4 per cent, raising concerns about inflationary pressures in the economy. The notable contributors to April's increase were the indexes for shelter and gasoline, which collectively accounted for over 70 per cent of the overall monthly rise. The energy index saw a 1.1 per cent uptick, while the food index remained unchanged, with declines in certain categories offsetting gains in others. Within the food category, prices at home dropped by 0.2 per cent, driven by declines in the prices of meats, poultry, fish, and eggs, while the index for cereals and bakery products increased. Conversely, the food away from home index rose by 0.3 per cent. Meanwhile, the index for all items less food and energy increased by 0.3 per cent in April, with notable rises seen in shelter, motor vehicle insurance, medical care, apparel, and personal care. However, indexes for used cars and trucks, household furnishings, new vehicles, and airline fares saw decreases. The 12-month data showed a 3.6 per cent increase in all items less food and energy index, with shelter contributing significantly to this rise. Notably, the index for motor vehicle insurance saw a substantial 22.6 per cent increase over the same period, alongside rises in medical care, personal care, and recreation. As concerns about inflation persist, analysts and policymakers are closely monitoring these developments, weighing their implications for monetary policy and consumer spending patterns.
