Consumer Prices Rise 0.1 Percent

Consumer prices inched up just 0.1 percent in April, but continuing uncertainty about inflation sustained worries that the Federal Reserve might raise interest rates again next week.

“Inflation’s not dead,” said David Wyss, chief economist with DRI/ McGraw-Hill in Lexington, Mass.

Declining food and energy costs tempered higher retail prices for other products and services including clothing, tobacco, medical care and airline tickets, holding price increases so far this year to an annual rate of 1.5 percent.

But when volatile prices for food and energy are excluded - as analysts often do to gauge broader economic trends - prices were up 0.3 percent last month, the largest increase since September. That left the core rate of inflation rising at an annual rate of 2.7 percent during the first four months of the year.

Analysts said the retail price report isn’t worrisome unless it’s the beginning of a trend.

That seems unlikely considering good news Wednesday that prices paid to producers of goods plunged 0.6 percent in April.

Energy prices fell 1.5 percent last month, while food prices fell 0.2 percent.