By CountingPips.com
U.S. Consumer Prices increased slightly less than unexpected in April as energy and food price rises continued to push the index higher, according to a report released today by the U.S. Department of Labor. The Consumer Price Index, a key gauge of inflation, rose by 0.4 percent in April following an increase of 0.5 percent in each of March and February. April marks the fifth straight month that consumer prices have increased by at least 0.4 percent and prices have increased to higher levels every month since July 2010.
Today’s data came in just below economic forecasts that were expecting a 0.5 percent increase.
On an annual basis, consumer prices were higher by 3.2 percent when compared to April 2010 following an annual increase in March by 2.7 percent. The annual increase was more than the 3.1 percent rise market forecasts were expecting.
Rising energy prices were a significant contributor in the increased inflation as the report showed that the energy index rose by 2.2 percent and gasoline prices increased by 3.3 percent for the month. Energy prices had risen by 3.5 percent in March while gasoline was higher by 5.5 percent.
Food prices rose by 0.4 percent in April after a 0.8 percent increase in March.
The core inflation reading, excluding volatile food and energy prices, rose by 0.2 percent for the month and matched economic forecasts. The annual rate of core inflation advanced by 1.3 percent for April following an increase of 1.2 percent in March.
US Dollar rising in Forex Trading
The U.S. dollar has been higher almost across the board in forex trading today against the other major currencies in the early going of the US trading session. The dollar has been gaining ground versus the euro, Canadian dollar, British pound sterling, New Zealand dollar, Australian dollar and the Swiss franc while trading lower against the Japanese yen, according to currency data by Oanda.
The US stock markets, meanwhile, have been moderately lower today with the Dow Jones falling by over 30 points, the Nasdaq decreasing by over 10 points and the S&P 500 showing a 3 point decline.
In commodities, Oil has traded about unchanged at $99.04 per barrel while gold futures have risen by $4.30 to $1,510.90 per ounce.
