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US inflation explodes in April with worse to come

NEW YORK – A 10% surge in used car prices pushed the “core” US Consumer Price Index (CPI) up by 0.9% in April – an annualized rate of increase of more than 11% – in the highest inflation print since the Great Financial Crisis of 2008. There’s worse to come, as higher housing costs feed into consumer prices.

The consensus forecast called for an increase in the “core” rate (excluding food and energy) of just 0.3%. We have been warning for weeks that visible price increases for homes, cars, and other items would produce an inflation surge.