Stronger economic news was released Tuesday on three fronts. The Investors Business Daily reports:
Consumer prices rose 0.4% in April, the Labor Department said Tuesday, the biggest gain in three years. Meanwhile housing starts rose 6.6% last month to 1.172 million units, the Commerce Department said. Industrial production jumped 0.7% in April, the most since November 2014, the Federal Reserve said. All three were stronger than expected.
Consumer prices rose 0.4% last month, the biggest monthly increase since February 2013. Economists expected a 0.3% increase. Gasoline costs shot up nearly 10% as energy costs climb.
Core CPI, which excludes food and energy rose 0.2%, in line with views.
Year over year, the CPI climbed 1.1%. Core CPI rose 2.1%, down from 2.2% in March and 2.3% in February.
The Federal Reserve has set a 2% inflation target. But its preferred inflation gauge, the core PCE deflator, showed only a 1.6% gain as of March.