Inflation Eased to 4.9% in April
Washington, DC, May 10, 2023-The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in April on a seasonally adjusted basis, after increasing 0.1% in March, the U.S. Bureau of Labor Statistics reported.
Over the last 12 months, the all items index increased 4.9% before seasonal adjustment.
The index for shelter was the largest contributor to the monthly all items increase, followed by increases in the index for used cars and trucks and the index for gasoline. The increase in the gasoline index more than offset declines in other energy component indexes, and the energy index rose 0.6% in April. The food index was unchanged in April, as it was in March. The index for food at home fell 0.2% over the month while the index for food away from home rose 0.4%.
The index for all items less food and energy rose 0.4% in April, as it did in March. Indexes which
increased in April include shelter, used cars and trucks, motor vehicle insurance, recreation, household furnishings and operations, and personal care. The index for airline fares and the index for new vehicles were among those that decreased over the month.
The all items index increased 4.9% for the 12 months ending April; this was the smallest 12-month increase since the period ending April 2021. The all items less food and energy index rose 5.5% over the last 12 months. The energy index decreased 5.1% for the 12 months ending April, and the food index increased 7.7% over the last year.
Reports the Wall Street Journal, “Inflation eased to 4.9% in April as the economy showed signs of cooling.
“Inflation has cooled from its recent peak, but remains stubbornly elevated. The Federal Reserve aggressively raised rates for more than a year to try to tame inflation by slowing economic activity, and indicated last week it might be done lifting them for now.
“The Fed is looking to see signs of inflation declining toward its 2% target. April’s rise comes after prices rose 5% in March from a year earlier.
“Consumer prices rose a seasonally adjusted 0.4% in April from the prior month, versus a 0.1% gain in March, the Labor Department said Wednesday in its consumer-price index report. April’s increase was driven by housing costs and an uptick in gasoline prices.”