Reply #41: Rising food and gas costs push up consumer prices

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http://hosted.ap.org/dynamic/stories/U/US_CONSUMER_PRICES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-05-13-09-31-11

WASHINGTON (AP) -- Consumers paid more for gas and food in April, pushing inflation to its highest level in two and a half years. But so far this month, inflationary pressures have begun to ease.

The Consumer Price Index increased 0.4 percent in April, the Labor Department said. In the past 12 months, prices have risen 3.2 percent. That's the biggest 12-month gain since October 2008.

Excluding volatile food and energy, prices ticked up 0.2 percent and have risen only 1.3 percent this year. That's double the gain posted six months ago, but still below the level the Federal Reserve considers a healthy pace of inflation.

The cost of new and used cars, clothing, and medical care all increased, pushing up the core index. Car prices likely increased because of temporary parts shortages caused by the March 11 earthquake and tsunami in Japan. Most other prices were subdued.