Consumer Prices Rose 3.4% in April YOY

Washington, DC, May 15, 2024-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April on a seasonally adjusted basis, after rising 0.4% in March, the U.S. Bureau of Labor Statistics reported.

Over the last 12 months, the all items index increased 3.4% before seasonal adjustment.

The index for shelter rose in April, as did the index for gasoline. Combined, these two indexes

contributed over seventy percent of the monthly increase in the index for all items. The energy index rose 1.1% over the month. 

The food index was unchanged in April. The food at home index declined 0.2%, while the food away from home index rose 0.3% over the month.

“U.S. inflation eased in April, with a key measure of price pressures slowing to its lowest level since spring 2021,” according to the Wall Street Journal.

“The consumer-price index, a gauge for goods and service costs across the U.S. economy, rose 3.4% in April from a year ago, the Labor Department said Wednesday. So-called core prices that exclude volatile food and energy items climbed 3.6% annually, the lowest increase since April 2021.

“Both of those year-over-year results were in line with the expectations of economists polled by The Wall Street Journal.

“Investors saw positive signs in the report that the Federal Reserve’s inflation fight is gradually slowing down the U.S. economy. The yields on 10-year Treasurys, which fall as prices rise, ticked lower. Stock futures advanced, continuing their march higher in May.”

According to CNN, “All three major indexes surged to record highs Wednesday after new data showed that inflation cooled in April after ticking up recently.

“The S&P 500, tech-heavy Nasdaq Composite and blue-chip Dow all closed at new record highs after the latest Consumer Price Index showed that prices were up 3.4% for the 12 months ended in April, easing from 3.5% the month before.

“The broad-market S&P 500 gained more than 1.2% on Wednesday and cracked the 5,300-level for the first time, closing at 5,308.15. The Nasdaq was about 1.4% higher, setting a new record at 16,742.39. The Dow, meanwhile, was up 350 points or 0.9% and teetered near the key 40,000-level, closing at 39,908. All three major indexes are tracking toward a winning week.”