US inflation dips from 4-decade high but still causing pain

May 12, 2022 1:23 pm

[Source: ABC]

Inflation in the USA has eased slightly in April after months of relentless increases but remained near a four-decade high, making it hard for millions of American households to keep up with surging prices.

Consumer prices jumped 8.3% last month from a year ago, the government said.

That was below the 8.5% year-over-year surge in March, which was the highest since 1981. On a monthly basis, prices rose 0.3% from March to April, the smallest rise in eight months.

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Still, Wednesday’s report contained some cautionary signs that inflation may be becoming more entrenched. Excluding the volatile food and energy categories, so-called core prices jumped twice as much from March to April as they did the previous month.

The increases were fueled by spiking prices for airline tickets, hotel rooms and new cars. Apartment rental costs also kept rising.

Eric Winograd, U.S. economist says those price jumps “make clear that there is still a long way to go before inflation returns to more acceptable levels.