The data released last week reflected that US inflation surged in April 2021 from a year earlier as the economic recovery picked up. Consumer prices jumped 4.2% in the 12 months through to April 2021, up from 2.6% in March 2021 and marking the biggest increase since September 2008. Inflation, which measures the rate at which the prices for goods and services increase, was pushed up by higher prices for cars and food in April 2021. In addition to rising prices, one of the main reasons for the big annual gain was because of base effects, meaning inflation was very low at this time in 2020 as the Covid pandemic caused a widespread shutdown of the US economy. The "core price index", which st
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