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The U.S. consumer prices post largest gain in nearly 12 years
CGTN
The U.S. citizens walking in the streets. /Xinhua

The U.S. citizens walking in the streets. /Xinhua

U.S. consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints, which could add fuel to financial market fears of a lengthy period of higher inflation.

The report from the Labor Department on Wednesday also showed a strong building up of underlying price pressures, extending a selloff on Wall Street.

Most economists were, however, unwavering in their belief that the surge in prices would be temporary.

Food prices increased 0.4 percent, lifted by solid gains in the costs of fruits and vegetables, dairy products, meats, fish and eggs. It also cost more to dine out. But gasoline prices fell 1.4 percent after accelerating 9.1 percent in March.

A sharp rebound is likely after hackers shut down Colonial Pipeline, leaving gas stations from Florida to Virginia running dry and prices at the pump surging this week.

(With input from agencies)

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