April's release of the consumer price index (CPI) suggests that inflation is beginning to firm. Core CPI inflation hit an eight-month high at 1.8 percent year over year, and headline CPI rose to 2.0 percent year over year. Core prices were elevated by gains in new and used vehicles, airfares, rent of shelter, and medical care. Large increases in food prices in recent months pushed up the headline CPI.

Consumer Price Index, year-over-year percent change