The consumer price index (CPI) rose by 0.8% to match its largest monthly increase, the U.S. Labor Department reported on May 12. The CPI measures a basket of goods as well as energy and housing costs.
Consumer prices increased sharply again in April, driving the rate of inflation to its highest level in around 13 years. This price jump signals greater stress on the economy while businesses struggle with supply shortages that are raising the price of a variety of goods and services.
The rate of inflation over the past year rose from 2.6% to 4.2% in April, its highest level since 2008. A Dow Jones (^DJI) survey had expected a 3.6% increase. The month-to-month gain ended up being 0.8%, against the expected 0.2%.
Excluding volatile food and energy prices, the core CPI also increased …