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Inflation Has a Long Way to Fall to Stop Being a Problem

Inflation might have peaked, but that isn’t the same thing as saying that it is under control.

The Labor Department on Wednesday reported that consumer prices rose a seasonally adjusted 0.3% in April from a month earlier, putting them 8.3% above their year-earlier level. In March, they were up 8.5% on the year. Core prices, which exclude often-volatile prices for food and energy items in an effort to better reflect inflation’s underlying trend, rose 0.6% from March and were up 6.2% from a year earlier in April. That compared with a 6.5% on-year gain in March. Even though inflation eased a bit on a year-over-year basis, the monthly gain in core prices in particular was bigger than economists expected to see.