US inflation slows spending

(MENAFN) US Labor Department said that consumer prices increased 0.3 percent last month, a smaller increase than a month earlier and in line with economists' expectations. However, inflation still outpaced workers' earnings and threatened to undermine consumer spending. Gasoline prices rose 1.7 percent, a sharp slowdown from February when costs at the pump rose more than three times as quickly. Still, workers' earnings fell 0.4 percent last month after adjusting for higher prices. A separate report showed consumer sentiment slipped in April as higher gasoline prices hit household budgets.