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U.S. consumer prices rise at faster pace in April

Staff Writer |
U.S. consumer prices picked up growth in April after falling in March, indicating the build-up of inflationary pressure.

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Consumer Price Index (CPI), a main gauge of inflation, rose 0.2 percent in April on a seasonally adjusted basis, compared to 0.3 percent decline in the previous month, said the Labor Department on Friday.

On a year-on-year basis, the index increased 2.2 percent, down from the 2.4 percent growth in March.

Food index rose 0.2 percent in April, slightly lower than the 0.3 percent growth in March, while the energy index grew 1.1 percent in the month, after declining 3.2 percent in March.

Excluding the volatile food and energy categories, the so-called core CPI went up 0.1 percent in April on a seasonally adjusted basis, and was up 1.9 percent over the year.

Analysts believed that the weakness in core CPI is likely to be transitory, and they expected the Federal Reserve would continue to tighten the monetary policy this year.