Economy

Published: Apr 30, 2022
Updated: Apr 30, 2022

Retail inflation on rise in US

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis after rising 1.2 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.3 percent before seasonal adjustment. Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9 percent over the month as the food at home index rose 1.0 percent. The energy index declined in April after rising in recent months. The index for gasoline fell 6.1 percent over the month, offsetting increases in the indexes for natural gas and electricity.

The index for all items less food and energy rose 0.6 percent in April following a 0.3-percent advance in March. Along with indexes for shelter, airline fares, and new vehicles, the indexes for medical care, recreation, and household furnishings and operations all increased in April. The indexes for apparel, communication, and used cars and trucks all declined over the month.

The all items index increased 8.3 percent for the 12 months ending April, a smaller increase than the 8.5-percent figure for the period ending in March. The all items less food and energy index rose 6.2 percent over the last 12 months. The energy index rose 30.3 percent over the last year, and the food index increased 9.4 percent, the largest 12-month increase since the period ending April 1981.

Food

The food index increased 0.9 percent in April; this was its seventeenth consecutive monthly increase. The index for food at home rose 1.0 percent after rising 1.5 percent the prior month. Five of the six major grocery store food group indexes increased over the month. The index for dairy and related products rose 2.5 percent, its largest monthly increase since July 2007. The index for nonalcoholic beverages also rose sharply, increasing 2.0 percent over the month. The index for meats, poultry, fish, and eggs rose 1.4 percent as the index for eggs increased 10.3 percent in April.

The index for cereals and bakery products increased 1.1 percent over the month, and the index for other food at home rose 0.7 percent. In contrast to these increases, the index for fruits and vegetables declined in April, falling 0.3 percent. The index for fresh fruits declined 0.5 percent, while the index for fresh vegetables was unchanged.

The food away from home index rose 0.6 percent in April after rising 0.3 percent in March. The index for full service meals rose 0.9 percent over the month. The index for limited service meals increased 0.3 percent in April after declining in March

The food at home index rose 10.8 percent over the last 12 months, the largest 12-month increase since the period ending November 1980. The index for meats, poultry, fish, and eggs increased 14.3 percent over the last year, the largest 12-month increase since the period ending May 1979. The other major grocery store food group indexes also rose over the past year, with increases ranging from 7.8 percent (fruits and vegetables) to 11.0 percent (other food at home).

The index for food away from home rose 7.2 percent over the last year. The index for full service meals rose 8.7 percent over the last 12 months, the largest 12-month increase since the inception of the index in 1997. The index for limited service meals rose 7.0 percent over the last year, while the index for food at employee sites and schools fell 30.0 percent, reflecting widespread free lunch programs.

Energy

The energy index declined 2.7 percent in April after rising 11.0 percent in March. The gasoline index declined in April, falling 6.1 percent after increasing 18.3 percent the prior month. (Before seasonal adjustment, gasoline prices fell 1.0 percent in April.) The other major energy component indexes increased in April; the index for natural gas rose 3.1 percent and the index for electricity increased 0.7 percent. The energy index rose 30.3 percent over the past 12 months. All the major energy component indexes increased over the year. The gasoline index increased 43.6 percent and the fuel oil index rose 80.5 percent. The index for electricity rose 11.0 percent, and the index for natural gas increased 22.7 percent over the last 12 months.