US consumer prices increased in April as booming demand amid a reopening economy pushed against supply constraints, which could fuel financial market fears of a lengthy period of higher inflation.
The consumer price index jumped 0.8%; excluding the volatile food and energy components, the CPI soared 0.9%.
Consumer spending, which accounts for more than two-thirds of US economic activity, increased 4.2% last month after falling 1.0% in February, the Commerce Department said on Friday.
Personal income jumped 21.1% after declining 7.0% in February. Economists polled by Reuters had forecast consumer spending increasing 4.1% and income surging 20.3%.
"These risks, should they materialise, could drive headline above the 4.5% target midpoint and possibly dislodge inflation expectations away from the midpoint," the bank said in its bi-annual Monetary Policy Review (MPR).
The South African Reserve Bank (SARB) targets consumer price inflation of between 3% and 6%, and the rate stood at 2.9% in February.
Imran said our efforts to reduce inflation are showing results as consumer price index and core inflation are both now lower than when PTI government was formed
Asad says during current month inflation on Consumer Price Index is down to 5.7 percent, while the Core Inflation is at 5.4 percent
Investors awaiting an auction of 30-year government debt shrugged off a report showing an increase in US consumer prices in December amid rising gasoline costs.
In the 12 months through December the CPI advanced 1.4% after increasing 1.2% in November.
According to PBS data, the Urban CPI inflation increased by 7.0pc on year-on-year basis in November 2020 as compared to an increase of 7.3pc in the previous month and 12.1pc in November 2019.