Though stronger than expected, the rate of inflation in April slowed for the first time in eight months, but experts still aren’t sure how long it will take for prices to return to normal levels—even if the worst has finally passed.
Overall prices rose 0.3% from March—higher than the 0.2% economists were expecting but much lower than the previous month’s increase of 1.2%, according to data released by the Labor Department on Wednesday.
On a yearly basis, prices jumped 8.3% last month, falling from 8.5% in March but exceeding expectations calling for an increase of 8.1%; the slowdown marked the first month-over-month decline since August.
The overall increase was the result of broad upticks across shelter, food, airline fares and new vehicle prices, while a month-over-month decline of 6.1% in long-surging gasoline prices helped offset the gains, the government said.
In a weekend note to clients, Goldman Sachs economist Ronnie Walker cautioned the inflation outlook remains “highly uncertain” due to lingering supply chains, red-hot wage growth and still-surging commodity prices—with gas prices, for example, jumping to record highs on Tuesday.
This is a developing story. Please check back for updates.
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