US consumer inflation surged 4.2 per cent last month compared to April 2020, the Labour Department said on Wednesday, posting the biggest year-on-year increase since 2008 as the economy recovered from the pandemic. Compared to March of this year, the Consumer Price Index (CPI) rose 0.8 per cent last month, seasonally adjusted, far above expectations and driven by widespread price increases, including for used vehicles and food, according to the report. The data is sure to add fuel to the debate over whether the Federal Reserve’s strategy of keeping interest rates low for a long period of time and allowing somewhat higher inflation to spur employment growth, as well as President Joe Biden’s massive spending proposals, could overheat the economy. Fed officials have insisted any spikes in prices will be temporary as the world’s largest economy recovers from the mass layoffs and business restrictions caused by the COVID-19 pandemic. “In the coming months, ongoing base effects, price increases stemming from the reopening of the economy and some pass-through of higher prices from supply chain bottlenecks should prompt higher inflation,” Kathy Bostjancic of Oxford Economics said.