According to figures issued Friday by the Bureau of Economic Analysis, prices climbed by 3.6 percent in April from a year ago, indicating rises in both commodities and services.
According to the statistics, prices grew 0.6 percent in the previous month in a key inflation index. However, consumer expenditure declined 0.1 percent in April compared to the previous month. Energy costs rose by 24.8 percent, while food costs rose by 0.9 percent.
The price index, which is considered a gauge of inflation, grew 3.1 percent year on year in April, excluding food and energy. The index was expected to rise 2.9 percent in April after climbing 1.9 percent in March. The Fed deems 2% to be a healthy level.
The Federal Reserve has said that a rise in inflation will be temporary, with prices dropping as the pandemic subsides. The Fed has indicated it is in no rush to raise interest rates.
After-tax income slid 15.1% in April from the record level in March that had been hiked by the billions of dollars in stimulus payments.
Personal income declined 13.1%, but that was less than the predictions of 14%. The government stimulus checks earlier this year had pushed personal income up 20.9% in March.
After taxes and other withholdings, disposable personal income dropped 14.6%.