U.S. consumer prices rebounded in April as cost of gasoline, food and rents increased. The steady increase of inflation could support the Federal Reserve to raise rate next month.
Consumer price index rose 0.2 percent in April after a 0.3 percent decline in March, the Labor Department said on Friday. Higher gasoline price helped lifted the index. Energy prices rose 1.1 percent in April.
The CPI rose 2.2 percent over the past 12 months. Economists had projected CPI to increase 0.2 percent in April and rise 2.3 percent year-on-year, according to Reuters.
The so-called core CPI, which excludes the cost of energy and food, rose 0.1 percent in April after a 0.1 percent drop in March. Over the past 12 months, core inflation has risen 1.9 percent.
The Federal Reserve has a inflation target of around 2 percent. The Fed has raised interest rate in March. The rising inflation could support the Fed to further increase the borrowing cost at its meeting next month.