Coindesk Logo

US CPI Report Shows April Inflation Faster Than Expected, Highest Since 2008

US CPI Report Shows April Inflation Faster Than Expected, Highest Since 2008

US CPI Report Shows April Inflation Faster Than Expected, Highest Since 2008

Nearly all major components of the CPI increased in April, a sign that pent-up demand is fueling a rebound in economic mobility.

Nearly all major components of the CPI increased in April, a sign that pent-up demand is fueling a rebound in economic mobility.

Nearly all major components of the CPI increased in April, a sign that pent-up demand is fueling a rebound in economic mobility.

AccessTimeIconMay 12, 2021, 1:02 PM
Updated Aug 19, 2021, 9:22 AM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

U.S. consumer prices rose to 4.2% in the 12 months through April, the fastest pace since 2008, the Labor Department's Bureau of Labor Statistics (BLS) reported Wednesday.

The latest reading on the Consumer Price Index (CPI) inflation report exceeded economists' average estimate for a 3.6% increase, and it compares with a 2.6% increase reported last month.

The CPI report is particularly important for some cryptocurrency investors who view bitcoin (BTC) as a hedge against inflation and ongoing currency debasement. However, concerns about higher inflation beyond the 2% threshold could cause the Federal Reserve to tighten monetary policy, which could weigh on risk assets.

  • On a month-to-month basis, headline April CPI increased 0.8%, beating expectations for a 0.2% rise after a 0.6% gain in March.
  • The index for all items less food and energy rose 0.9% in April, its largest monthly increase since April 1982, according to the BLS.
  • Nearly all major components of the CPI increased in April, including prices for used cars, trucks, shelter and airline fares – a sign that pent-up demand is fueling a rebound in economic mobility.

U.S. stocks slumped for a third day and bond yields rose after the report. As of press time, bitcoin (BTC) was down 1% since 0:00 coordinated universal time.

"The Fed is not going to panic after one startling CPI report, so you can expect to hear even more about transitory bottleneck inflation pressures over the next few weeks," wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in an email. "But this report does mean that the first part of the higher inflation story - the reopening spike - is real." 

Robert Frick, corporate economist at Navy Federal Credit Union, wrote that, "In looking at the different categories, you can dismiss many price gains as temporary, which tilts the argument against persistently high inflation, but doesn't dismiss it entirely."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.