Consumer prices rise 0.2 percent

Friday, May 14, 2004 | 9:05 a.m.

Prices paid by U.S. consumers in April rose 0.2 percent, the fifth straight increase, reflecting higher costs for hotel stays, medical care and college tuition.

The increase in the consumer price index followed a 0.5 percent gain in March, the Labor Department said today in Washington. Excluding food and energy, the so-called core index rose 0.3 percent after a 0.4 percent rise.

Consumer prices minus food and energy were 1.8 percent higher last month than in April of last year, the biggest year-over-year increase since January 2003. Demand has been spurred by tax refunds and the creation of 625,000 jobs in the last two months, affording some companies the ability to discount less.

"We've seen prices percolating in the lower stages of production, and it's starting to show in finished goods prices," said Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi Ltd. in New York. "Price pressures are emerging for the first time in many years."

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