Consumer Prices Up in April

Washington, DC, May 17, 2006–Energy prices pushed the consumer price index up 0.6% on a seasonally adjusted basis in April, according to the Labor Department.

Higher shelter costs boosted the core CPI index, which excludes food and energy prices, to a 0.3% gain.

The increase in the CPI and the core rate were both slightly higher than forecast. Economists expected a 0.5% gain in the CPI. The core CPI was expected to rise 0.2%.

The increase in the CPI was the highest since a 0.7% increase in January. The core CPI is up 0.3% for two straight months.

In the past year, the CPI has risen 3.5%, up from 3.4% on a year-on-year basis in March. Over the same period, the core CPI has risen 2.3%, up from 2.1% in the previous month.

For the first four months of the year, inflation is running at a 5.1% annual rate. This compared with a 3.4% rate for all of 2005.

Excluding food and energy, the core CPI is up at a 3.0% pace so far this year, following a 2.2% rise for all of 2005.

Energy prices, which increased 3.9%, were the main source of higher consumer prices in April. Fuel oil prices rose 5.2%, the largest gain since September 2005. Gasoline prices rose 8.8% in April.

Over the past year, energy prices are up 17.8%, while gasoline prices are up 21.5%.

Food prices were flat in April for the first time since last June.

Transportation prices rose 2.4% in April. Airline fares rose 1.6%, the largest increase since last July.

New car prices fell 0.1% in April.

Shelter costs rose 0.3% in April, and accounted for about one-half of the increase in core prices, the government said.

The core rate was also boosted by higher apparel, medical care, and education costs.