The Consumer Price Index increased 0.2% in April, the U.S. Bureau of Labor Statistics reported this morning. Over the last 12 months, the CPI rose 2.2%. This is a larger increase than the 1.7% average annual increase over the past 10 years. This indicates that inflation has definitely moved to the range targeted by the Federal Reserve.
The rising cost of housing, energy, tobacco, and food all contributed to the increase in overall inflation. Food prices rose mostly due to a sharp increase in the prices of fresh vegetables. At the same time, many prices fell in April, including those for mobile phone services, medical care, car insurance, clothing, and new and used cars and trucks.