Consumer Price Index Records Biggest Increase In Over Three Years In April As Gasoline, Rents Rise

U.S. consumer prices recorded their biggest increase in more than three years in April as gasoline and rents rose, pointing to a steady inflation buildup that could give the Federal Reserve ammunition to raise interest rates later this year.

The Labor Department said on Tuesday its Consumer Price Index increased 0.4 percent last month, the largest gain since February 2013, after rising 0.1 percent in March. That took the year-on-year increase in the CPI to 1.1 percent from 0.9 percent in March.