U. S. Labor Department said its Consumer Price Index rose 0.2% after slipping 0.1% in March. In the 12 months through April, the CPI increased 2.5%, the biggest gain since February 2017, after rising 2.4% March.

Excluding the volatile food and energy components, the CPI edged up 0.1% after two straight monthly increases of 0.2%. The so-called core CPI rose 2.1% year-on-year in April, matching March's increase.

The market had forecast the CPI rebounding 0.3% in April and the core CPI climbing 0.2%.

The Federal Reserve tracks a different inflation measure, which is now flirting with the U.S. central bank's 2% target. The personal consumption expenditures price index excluding food and energy accelerated to 1.9% year-on-year in March as last year's big declines in the price of cell phone service plans dropped out of the calculation.

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