WASHINGTON: A key measure of US consumer inflation in April took its biggest jump in five months as prices for fuel, shelter and medical care rose, government data showed Friday.
But other signs of price pressures fell short of expectations, extending the recent trend of low inflation despite rising wages and falling unemployment, reports AFP.President Donald Trump quickly hailed the new inflation reading, saying it left the US economy in pole position.
“Really good, very low inflation!” he said on Twitter. “We have a great chance to ‘really rock!'”
The latest figures came as Trump more than doubled import duties on a vast tranche of Chinese imports, which economists say could begin to pinch American retail consumers who have so far felt little from the US-China trade war.
The Labor Department’s Consumer Price Index — which tracks costs for household goods and services — rose by a cooler-than-expected 0.3 percent compared to March, with most of the increase due to rising gasoline prices.
With the volatile food and fuel categories stripped out, the “core” index rose only 0.1 percent for the third straight month. Costs for used cars and trucks, clothing and household furnishings all fell.