Basic needs like energy and shelter gave a boost to the Consumer Price Index. Energy prices pushed the total index up 0.6 per cent, and shelter costs drove the core up 0.3 per cent. These increases, according to a MarketWatch story, were slightly higher than anticipated and predicted by economists: a 0.5 per cent increase to the total index, and a 0.2 per cent raise to the core.



These increases will likely put continued pressure on the Fed to raise interest rates ? something many had assumed/hoped would stop after the Fed?s last increase. The Fed has raised interest rates 16 times in a row over the past 23 months.



The core CPI is up at a 3.0% pace so far this year, following a 2.2% rise for all of 2005. For the first four months of the year, inflation is running at a 5.1% annual rate, compared with a 3.4% rate for all of 2005.



You can read more about this story at Energy, shelter costs push April CPI higher.


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