The Bureau of Economic Analysis' price index tracking US consumer spending rose 3.6% in the year ending April, its biggest jump since September 2008. Excluding food and energy prices, the index gained 3.1%, the biggest increase since July 1992.
People are spending big again, with battered industries like travel and hospitality coming back to life. That has sent prices surging.A key measure of inflation, after stripping out more volatile food and energy prices, jumped to a 29-year high in April. The Bureau of Economic Analysis' price index tracking US consumer spending rose 3.6% in the year ending April, its biggest jump since September 2008 -- the height of the financial crisis. Excluding food and energy prices, the index gained 3.
The consumer sentiment index dipped slightly in May but was in line with expectations.But while further price increases are likely, steep price drops during the worst of the pandemic last spring make for a tough comparison. In the coming months, the year-over-year price comparisons will come more into parity, helping inflation look less dramatic.That's why the Fed has said inflation will be temporary.