The country’s inflation rate is 4.2%.
The US consumer price index reached 4.2% over the past 12 months, the highest level since September 2008. The Ministry of Labor of the country announced this on Wednesday. Experts predicted that this level of inflation would reach 3.6%.
Consumer prices in April increased by 0.8% compared to March. Experts expected an increase of 0.2%. In their opinion, the current figure is caused by growing demand as the spread of the coronavirus weakens.
Excluding food and energy prices, the core consumer price index rose 0.9% from March and the highest since 1982. Gasoline prices, on the other hand, fell for the first time in almost a year.
A report from the Ministry of Labor showed a sharp rise in prices for cars, transportation services and hotel accommodation as businesses most affected by the pandemic resumed operations.
The rate of inflation has increased sharply after several years of staying at an unusually low level, mainly due to the recovery of the US economy. Experts attribute the current situation to the fact that enterprises cannot keep up with demand. The US Federal Reserve, which serves as the country’s central bank, believes that the current increase in inflation is temporary.