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Inflation pressures ease despite food price jump
Staff and agencies
By MARTIN CRUTSINGER, AP Economics Writer 2 minutes ago
WASHINGTON - Inflation pressures eased a bit in April despite the biggest jump in food prices in 18 years.
The lower inflation reflected a flat reading for energy, which helped offset a 0.9 percent jump in food costs as prices climbed for many basic items, from bread and milk to coffee and fresh fruits.
The reported drop in gasoline prices reflected the government‘s accounting process, which discounts expected seasonal price changes.
Core inflation, which excludes food and energy, showed prices well behaved in April, rising by just 0.1 percent, compared to a 0.2 percent gain in March.
The Fed, fighting against a severe credit crunch and spreading economic weakness, has cut interest rates seven times since last September in an effort to keep the country from toppling into a recession.
So far this year, overall inflation is rising at an annual rate of 3 percent, down from a 4.1 percent increase for all of 2007. Core inflation, excluding energy and food, is up at an annual rate of 1.8 percent in the first four months of this year, compared with a 2.4 percent increase for all of 2007.
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