---
title: "Consumer Prices Experience Largest Gain In Three Years As Food Prices Rise"
url: https://burnaze.com/article/3107e633-2d34-4325-bdc3-0d0fe0a6be42
source: "1851 Franchise"
original_url: https://1851franchise.com/consumer-prices-experience-largest-gain-in-three-years-as-food-prices-rise-4642
category: "Finance"
topics: ["Finance & M&A"]
published: 2016-05-17T21:16:07.000Z
modified: 2026-11-01T12:24:37.136Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/d97c39f18ee6f4685778a5d71608dcb16095160517123245.png
---

# Consumer Prices Experience Largest Gain In Three Years As Food Prices Rise

**TL;DR:** U.S. consumer prices experienced their largest gain in three years, driven by increases in food, medical care, and other costs. The Labor Department's Consumer Price Index jumped 0.4 percent in April.

*originally published in 1851 Franchise on 2016-05-17. [Read the original](https://1851franchise.com/consumer-prices-experience-largest-gain-in-three-years-as-food-prices-rise-4642).*

## Story

For the first time in more than three years, U.S. consumer prices experienced their biggest increase. The Labor Department said its Consumer Price Index (CPI) jumped 0.4 percent in April after a 0.1 percent increase in March. That’s the largest gain it has seen since February 2013.

According to a Reuters article featured on Fox Business, there were also increases in both medical care and food prices, which are left out of the core CPI. Medical care costs jumped 0.3 percent in April, building on a 0.1 percent increase in March. Food prices also rose 0.2 percent last month, bouncing back from falling by the same amount in March.

This latest CPI is a good sign for businesses—the increases suggest that the American economy is growing and picking up speed in the second quarter. However, there are still concerns that the labor market isn’t its healthiest considering last month's slowdown in payrolls gains and a recent increase in applications for unemployment benefits.

Either way, these increases are likely going to be welcomed by the Fed and its efforts to raise interest rates. But because growth has been slow so far this year, financial markets still don’t expect the Fed to raise interest rates before September.

## Entities

- 1851 Franchise (publication)
- General (sector)
- Fox Business (company)
- economic growth (topic)
- interest rates (topic)
- Reuters (company)
- Labor Department (regulator)
- inflation rate (topic)
- Fed (regulator)
- consumer prices (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/consumer-prices-experience-largest-gain-in-three-years-as-food-prices-rise-4642). Summarized by Burnaze (https://burnaze.com/article/3107e633-2d34-4325-bdc3-0d0fe0a6be42).