Washington | US consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2 per cent target and posting its largest annual gain since 1992, because of pent-up demand and supply constraints as the economy reopens.

The strong inflation readings reported by the Commerce Department on Friday (Saturday AEST) had been widely anticipated as the pandemic’s grip eases, thanks to vaccinations, and will have no impact on monetary policy. Fed chairman Jerome Powell has repeatedly stated that higher inflation will be transitory.

Reuters