Consumer prices edged up 0.1 percent in April, but core inflation which excludes food and energy increased by 0.3 percent. Its largest gain since January 2013. Shartia Brantley reports.
Medical care and rent may cost you a bit more. Consumer prices rose by one-tenth of a percent in April, in line with expectations. However, the medical care index saw its biggest increase in more than eight years, up seven tenths of one percent. While rent rose three-tenths of one percent. Core inflation which excludes volatile food and energy prices, also climbed three-tenths of one percent. Its largest gain since January 2013. Over the past year core consumer prices are up 1.8 percent. The Fed's target for inflation is 2-percent. Robert Brusca, Chief Economist at FAO Economics said: SOUNDBITE: ROBERT BRUSCA, CHIEF ECONOMIST, FAO ECONOMIS IN (ENGLISH) SAYING: The "Fed will look at the core. Core is showing acceleration. Inflation looks like it is a little bit more to where they want it. Recent economic data have turned sour. I don't think inflation is high enough and certain enough that this report will have the Fed moving on the interest rate front." Fed Chair Janet Yellen could provide more clues on the thinking of central bankers in a speech on the economic outlook Friday afternoon. The next Fed meeting is in June.