Inflation retreated in April but remained higher than forecast.
The Department of Labor said Wednesday that the Consumer Price Index rose 8.3 percent compared with a year ago. Prices were up 0.3 percent compared with the prior month.
This is the eleventh straight month of inflation above 5 percent. Prices rose at an annual rate of 8.5 percent in March. This was the month since September 2021 that the year-over-year inflation figure was not higher than the month earlier.
Economists had forecast CPI to rise by 0.2 percent for the month and 8.1 percent compared with a year ago.
Core CPI, which excludes food and energy, rose 0.6 percent, well above the 0.4 percent estimate. Compared with a year ago, core prices were up 6.2 percent, above the 6.0 percent expected.
After inflation average hourly earnings for all employees fell 0.1 percent from March to April, the U.S. Bureau of Labor Statistics said. Real average hourly earnings decreased 2.6 percent, seasonally adjusted, from April 2021 to April 2022.
The futures market showed stocks are likely to sell-off after the worse than expected results. High inflation likely means the Fed will have to raise rates higher and at a faster pace than otherwise to restore price stability.