According to the Consumer Price Index (CPI) and the Labor Department, inflation rose 4.2% throughout the last year, the fastest growth in over 12 years. A Dow Jones survey indicated that economists had expected a 3.6% increase.
The CPI measures the price of goods, energy, and housing.
In a separate survey by FactSet, economists expected a 0.3% increase in April, instead, inflation rose by 0.7%.
Building materials have risen dramatically over the last year as well, with lumber prices rising 124% and copper rising 36% in 2021.
Federal Reserve policymakers have dismissed the data, asserting that it could be because of the economic shutdown that took place last year, and adding that comparisons will likely be unreliable for the next few months.
The report’s release also caused several big sales on Wall Street causing the stock market to reach session lows.
