US CPI rises 0.1% month-on-month in April, down 0.2% year-on-year, as expected
The US consumer price index (CPI) rose 0.1% month-on-month in April, easing back from a 0.2% in March, as forecast by analysts.
The Bureau of Labor Statistics said compared to a year ago the US fell further into deflation, down 0.2% year-on-year in April, as expected, following a 0.1% drop in March.
A fall in energy and food prices dragged the CPI lower in April, the report said.
Excluding energy and food, core inflation rose 0.3% month-on-month in April, better than the 0.2% gain expected.
"The 0.3% month-on-month increase in core consumer prices in April, which pushed the three-month annualised rate of core inflation up to a four-year high of 2.6%, leaves the Fed with less scope to delay raising interest rates," Capital Economics said.
"Admittedly, the annual core inflation rate remained at 1.8%, but the upward trend in the monthly increases since January is pretty clear now."