(by Thomas Catenacci | Daily Caller) – The consumer price index has jumped 4.2% over the last 12 months, the fastest pace of inflation since 2008, according to a Department of Labor report.
The consumer price index (CPI) increased 0.8% between March and April, according to the Labor Department report released Wednesday morning. Economists projected that the CPI increased by 0.2% last month and 3.6% over the 12-month period ending in April, according to The Wall Street Journal.
“I think a lot of us are expecting a pretty significant increase of spending on services in the next couple months and that’s where a lot of the pressure on CPI is going to come from,” Richard Moody, chief economist at Regions Financial Corp, told the WSJ prior to the report.
“It’s a question of how long that burst in spending persists,” Moody said. “And the longer it persists, the more latitude producers have to raise prices.”
Last month, the CPI rose 0.6% while the index increased 0.4% in February. In the 12-month period ending in March, the CPI jumped 2.6%.
Some economists have pointed to increased government spending as the reason for rising consumer prices.
The U.S. economy added just 266,000 jobs last month after economists predicted it would add a million, according to a report released Friday. The Chamber of Commerce and other business groups blamed the meager report on continued weekly $300 unemployment benefit bonus payments included in the $1.9 trillion American Rescue Plan. Read Full Article >