A measure of inflation that is closely tracked by the Federal Reserve increased in April
Associated PressWASHINGTON — A key index of U.S. prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high. But a vocal group among the Fed’s 18-member interest-rate setting committee has pushed for more rate hikes later this year on the grounds that inflation isn’t slowing quickly enough. Omair Sharif, founder of Inflation Insights, noted that a few pricing quirks fueled April’s bigger-than-expected rise in core prices and said he believed they won’t likely persist. Though used car prices jumped 4.7% last month, Sharif noted that measures of wholesale used car costs are declining and suggested that they will help slow overall inflation by June. It showed that a measure of businesses’ investment in durable factory goods jumped 1.4% in April — evidence that companies have continued to spend despite higher inflation and borrowing costs given still-steady consumer demand.