Inflation in the US keeps accelerating
Both consumer and producer prices in the US grew at a higher rate in April 2021, contributing to the self-fulfilling prophecy of racing inflation. Headline consumer price index increased by 4.2% y/y compared to 2.6% y/y in March. The core indicator, which excludes food and energy, grew by 3% y/y compared to 1.7% in March. Producer prices, which tend to predict consumer price dynamic, jumped by 6.2% y/y in April compared to 4.2% y/y in March.
The Personal consumption expenditure (PCE) Price Index, Fed's preferred inflation gauge, is yet to be updated for April. Nonetheless, it is following an upward path as well, with the headline indicator increasing by 1.5% and 2.3% in February and March, respectively.
Further data and analysis on the US economy is available on the CEIC US Economy in a Snapshot – Q2 2021 report.