Inflation accelerated at its fastest pace in more than 12 years for April as the U.S. economic recovery kicked into gear and energy prices jumped higher, the Labor Department reported Wednesday.The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, against the expected 0.2%.Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis. The respective estimates were 2.3% and 0.3%.The increase in the headline CPI rate was the fastest since September 2008….
More than 1,000 gas stations in the Southeast reported running out of fuel, primarily because of what analysts say is unwarranted panic-buying among drivers, as the shutdown of a major pipeline by a gang of hackers entered its fifth day Tuesday.
Government officials acted swiftly to waive safety and environmental rules to speed the delivery of fuel by truck, ship or rail to motorists and airports, even as they sought to assure the public that there was no cause for alarm.
The Colonial Pipeline, the biggest fuel pipeline in the U.S., delivering about 45% of what is consumed on the East Coast, was hit on Friday with a cyberattack by hackers who lock up computer systems and demand a ransom to release them. The attack raised concerns, once again, about the vulnerability of the nation’s critical infrastructure.
The national average for a gallon of gas jumped above $3 on Wednesday for the first time since 2014, as much of the crucial Colonial Pipeline remains offline.
Amid fears of a supply shortage, consumers in Southeastern states are heading to the pump, creating long lines and in some cases wiping fuel stations dry.
On average, Americans are now paying $3.008 for a gallon of gas, up from $2.985 on Tuesday and $2.927 one week ago.
In some Southeastern states, the jump in prices is much larger. Georgians are now paying $2.951 per gallon, up from $2.715 one week ago. In North Carolina the average now sits at $2.850, compared to the $2.689 level one week ago. In Virginia, meanwhile, prices have jumped from $2.741 to $2.871.
INFLATION WATCH: U.S. consumer price index soars 0.8% in April to match biggest increase since 2009. Yearly CPI rate jumps to 4.2% from 2.6% and hits 13-year high. Core CPI also shoots up 0.9% in the month and hits 26-year peak of 3%. Inflation is rising pretty much everywhere…
— MarketWatch Economy (@MKTWeconomics) May 12, 2021
⚠️BREAKING:
*U.S. CONSUMER PRICE INFLATION JUMPS 4.2% IN APRIL, LARGEST INCREASE SINCE SEPTEMBER 2008 pic.twitter.com/dtUMfPMqHj
— Investing.com (@Investingcom) May 12, 2021
#Inflation fears rise on both sides of the Atlantic after data shows US inflation running hotter than expected: US inflation expectations – measured by 5y5yswap – jumps to the highest level since 2017 while Eurozone inflation expectations rose to the highest since 2018. pic.twitter.com/dcAJsfhHem
— Holger Zschaepitz (@Schuldensuehner) May 12, 2021