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A key index of US prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high.
The index, which the Federal Reserve closely monitors, showed that prices rose 0.4% from March to April.
That was much higher than the 0.1% rise the previous month.
Measured year over year, prices increased 4.4% in April, up from 4.2% in March.
The year-over-year figure is down sharply from a 7% peak last June but remains far above the Fed’s 2% target.
Friday’s report from the government also showed that despite rising prices, consumers remain buoyant.
Their spending jumped 0.8% from March to April, the biggest increase since January.
Much of the increase was driven by spending on new cars, which soared 6.2%. Among other items, Americans also bought more computers, gasoline and clothing.
Despite longstanding predictions of a forthcoming recession, Friday’s data underscored the US economy’s surprising resilience.
Consumer spending, which drives most of the US economy, has been bolstered by solid job gains and pay increases.
The economy, which grew at a sluggish 1.3% annual rate from January through March, is projected to accelerate to a 2% pace in the current April-June quarter.
At the same time, the persistence of high inflation is complicating the Federal Reserve’s interest rate decisions.
Chair Jerome Powell has signaled that the Fed will likely forgo a rate hike when it meets in mid-June, after 10 straight increases in the past 14 months.
But a vocal group among the Fed’s 18-member interest-rate setting committee has pushed for more rate hikes later this year on the grounds that inflation isn’t slowing quickly enough.
