The Bureau of Labor Statistics (BLS) released its April Consumer Price Index (CPI) report on Wednesday morning, and it's more bad news for the Biden administration and the Federal Reserve as their half-hearted fight to tame inflation continues to look largely ineffective at making a noticeable difference for the American people.
CPI inflation increased 0.4 percent in April, while costs rose 4.9 percent in the last 12 months. The core CPI number — excluding more volatile food and energy prices — also increased 0.4 percent month-over-month for April for a 5.5 percent annual advance.
CPI for all items rises 0.4% in April; shelter, used cars and trucks, and gasoline up https://t.co/dJyJeKlXDJ #CPI #BLSdata
— BLS-Labor Statistics (@BLS_gov) May 10, 2023
The April CPI number, BLS explained, was driven by increases across a range of indexes that outpaced limited decreases in other areas:
The index for shelter was the largest contributor to the monthly all items increase, followed by increases in the index for used cars and trucks and the index for gasoline. The increase in the gasoline index more than offset declines in other energy component indexes, and the energy index rose 0.6 percent in April. The food index was unchanged in April, as it was in March. The index for food at home fell 0.2 percent over the month while the index for food away from home rose 0.4 percent.
Townhall noted previously that the March CPI release showed headline inflation rising 0.1 percent, meaning April's report shows an acceleration of inflation that mirrors what was seen in last month's first quarter Personal Consumer Expenditures price index estimate from the Bureau of Economic Analysis.
That acceleration is because so many indexes — shelter, used cars and trucks, motor vehicle insurance, recreation, household furnishings and operations, food away from home, and personal care — saw increases in April while limited decreases in food at home, airline fares, and new vehicles failed to bring the headline CPI number down.
The CPI report's 4.9 percent annual increase also means the average American worker again took a pay cut — after more than two years-worth of pay cuts — to their real wages. As Townhall reported earlier this month, the April jobs number showed annual wage growth at 4.4 percent, meaning American workers are still making a -.5 percent real wage as inflation continues to outstrip wage increases.
Broken down more specifically, here's which indexes continue to show the greatest inflation in the 12 months that ended in April:
- financial services - 8.4 percent
- apparel services - 9.2 percent
- delivery services - 7.4 percent
- fees for lessons or instructions - 12.1 percent
- veterinarian services - 10.2 percent
- motor vehicle insurance - 15.5 percent
- motor vehicle repair - 20.2 percent
- transportation services - 11.0 percent
- rent of primary residence - 8.8 percent
- stationary and gift wrap - 9.7 percent
- pet food - 14.6 percent
- medical equipment and supplies - 9.9 percent
- motor oil - 13.1 percent
- household paper products - 11.9 percent
- outdoor equipment and supplies - 12.1 percent
- electricity - 8.4 percent
- food at elementary and secondary schools - 296.0 percent
- spices, condiments, and sauces - 10.3 percent
- salad dressing - 14.8 percent
- margarine - 23.8 percent
- carbonated drinks - 11.9 percent
- eggs - 21.4 percent
- crackers and bread - 13.1 percent
- cereal - 11.3 percent
Despite President Biden's promise to "build back better," his ongoing spending binge and reckless monetary policy means that interest rate hikes from the Federal Reserve aren't going to solve the problem or bring noticeable relief to the American people. Instead, the government must also address reducing spending in order to actually allow interest rate increases to slow down price increases. Without that action, there will only be more disastrous GDP reports showing economic growth slowing while inflation continues to accelerate.