A rising inflation trend continues as prices rose by 3.6% in April from a year ago, reflecting increases in both goods and services, according to data released Friday by the Bureau of Economic Analysis.
Prices rose 0.6% in the past month in a key inflation indicator, the data showed. But consumer spending fell 0.1 percent in April compared to last month. Energy prices increased 24.8% while food prices increased 0.9%.
The price index, considered a measure for inflation, increased 3.1% in April from a year ago, excluding food and energy. The index was forecast to increase 2.9% after rising 1.9% in March. The Fed considers 2% to be healthy.
The Federal Reserve has said that a rise in inflation will be temporary, with prices dropping as the pandemic subsides. The Fed has indicated it is in no rush to raise interest rates.
After-tax income slid 15.1% in April from the record level in March that had been hiked by the billions of dollars in stimulus payments.
Personal income declined 13.1%, but that was less than the predictions of 14%. The government stimulus checks earlier this year had pushed personal income up 20.9% in March.
After taxes and other withholdings, disposable personal income dropped 14.6%.
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