WASHINGTON, D.C. (NBC) – Inflation accelerated at its fastest pace in more than twelve years for April as the U.S. economic recovery kicked into gear.
The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year ago.
Economists were expecting a 3.6% increase.
Still, the annual numbers need to be taken in context.
Inflation for April 2020 was very low, with much of the country shut down by the pandemic.
For that reason, Federal Reserve policymakers and many economists are dismissing the current round of numbers with the expectation that inflation will settle down later this year around the 2% range targeted by the central bank.
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