Inflation soars 8.3% in April, hovering near 40-year high

Inflation cooled for the first time in months in April, even as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumers prices running near a 40-year-high.

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.3% in April from a year ago, below the 8.5% year-over-year surge recorded in March. Prices jumped 0.3% in the one-month period from March.

Those figures were both higher than the 8.1% headline figure and 0.2% monthly gain forecast by Refinitiv economists.

So-called core prices, which exclude more volatile measurements of food and energy, climbed 6.2% in April from the previous year, which was also more than Refinitiv expected. Core prices also rose 0.6% on a monthly basis – double the 0.3% increase notched in March, suggesting that underlying inflationary pressures remain strong.

“This is another upward inflation surprise and suggests that the deceleration is going to be painstakingly slow,” said Seema Shah, chief strategist at Principal Global Investors. “The focus will soon start shifting from where inflation peaked to where it plateaus, and we fear…

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