US stocks tumble as data shows inflation spiked higher than expected in April

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US stocks fell Wednesday morning after data showed inflation measured by the Consumer Price Index rose 4.2% in April, the most since 2008.

The consumer price index increased 4.2% year over year in April and 0.8% from the prior month. Economists were expecting a 3.6% year over year gain and 0.2% gain from March figures.

The higher-than-expected figure stoked further concerns that the Federal Reserve is misreading the inflation story. The US central bank has signaled that inflationary pressures will only be transitory.

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