Consumer prices around the U.S. rise at fastest rate since 2008

Consumer prices last month rose at the fastest rate since the Great Recession, firing up concerns about U.S. inflation.

The Consumer Price Index, which tracks the prices of everything from cars to clothing, jumped 0.8% in April, the Labor Department said Wednesday. Over the past 12 months, prices have increased 4.2% — the fastest rise since September 2008. Used car prices led the surge, with a record 10% increase. But the gains were broad-based. Core inflation, which excludes volatile food and energy, jumped 3% over the past year. "Almost all the gain was driven by outsized increases in sectors that are seeing demand surge as restrictions ease," Michael Pearce, chief U.S. economist at Capital Economics, said in a research note. "The rise in airfares and hotel prices is so far simply reversing the sharp declines in prices seen earlier in the pandemic. But car rental prices have surged well above pre-pandemic levels, reflecting limited supply."