Consumer prices experienced the highest monthly rise they’ve experienced since September 2008, with April reporting a 0.8% in consumer prices for goods and services, worrying analysts that a spike in inflation could stifle a post-pandemic economic recovery.
According to Politico, the increase in prices have been simmering for months. The new and used car markets contributed about one-third of the price increases due to a computer chip shortage that lowered the production of new vehicles and put upward pressure on used car prices. Increases in housing, food and clothes also contributed to the monthly rise.
Year-over-year costs increased by 4.2%, the highest that figure has jumped since September 2008 when it increased 4.9%. Taking out volatile energy and food prices, costs increased 3.0% over the last 12 months, and 0.9% in April.
“It looks like inflation pressures are not only building but are likely to be here at least through the rest of the year,” said Joel Naroff, chief economist at Naroff Economic Advisors. “With growth robust, firms have a measure of pricing power that they haven’t had in decades, and they appear to be using it.”