Consumer Prices Rise 4.2% in Largest Yearly Increase Since 2008

The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index, which economists use to measure inflation, rose 0.8% in April and 0.6% in March, marking a 4.2% 12-month increase. This was the largest monthly increase since 2009 and the largest yearly increase since 2008, when prices rose 4.9% year-over-year. While the CPI measures prices for a common “basket of goods,” not all prices rose equally; used car and truck prices rose 10% in the month of April alone, accounting for a third of the overall monthly increase. Additionally, food prices rose 2.4% and energy prices rose 25.1% over the last 12 months. Part of the April 2021 yearly increase came from unusually low inflation in early 2020, which saw the largest monthly decrease since 2008. Federal Reserve officials said as recently as Tuesday that they expected prices to rise temporarily and then slow down once supply chains recovered from the coronavirus pandemic. Coverage was most prominent in business-focused outlets, with coverage from across the spectrum reporting similarly on the data and the context behind it. Coverage from some right-rated outlets focused more on the Biden administration, attributing the price increase to the “Biden economy.”