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The Labor Department released the U.S. inflation data today. The U.S. consumer price index increased 0.3% in April, from a 0.2% rise in March. That was the biggest rise since June last year. Analysts expected this increase. The U.S. consumer price increase was driven by higher costs for gasoline, shelter and food. On a yearly basis, the U.S. consumer price index increased 2.0% in April, from a 1.5% rise in March.
The U.S. producer price index excluding food and energy climbed 0.2% in April, meeting expectations of analysts. On a yearly basis, the U.S. consumer price index excluding food and energy climbed 1.8% in April, from a 1.7% rise in March.
The inflation target of the Fed is 2%. The Fed was concerned as the inflation was low, but the increase in consumer prices should ease the concerns.
The U.S. food prices climbed 0.4% in April, caused by a drought in the West. A drought pushed up prices for meat, dairy, fruit and vegetables. Gasoline prices increased 2.3%.
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