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15/05/24
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April CPI Slowed Slightly
In April, inflation in the U.S. slowed slightly while the measure of core prices which is the Federal Reserve’s preferred gauge remained stubbornly high although it decelerated slightly.
On Wednesday, the Bureau of Labor Statistics’ data showed that in April the U.S. consumer price index gained 3.4% on an annualized basis, as per expectations, slightly less than the 3.5% growth seen the prior month.
The index rose 0.3% on a monthly basis, slightly slower than the expected 0.4% growth, which was also the March figure.
According to the BLS, the main factors behind the gain were increases in the prices of gasoline and shelter, as together these two indexes contributed more than 70% of the monthly increase in the index.
The core reading, which excludes volatile items such as energy and food, rose 3.6% year-on-year, a smaller increase than March’s 3.8% growth. The core figure rose by 0.3% on a month-on-month basis, less than March’s 0.4% growth.
BLS added the major indices driving the rise in the core figure were motor vehicle insurance, personal care, shelter, apparel, and medical care.
The numbers were still higher than the Fed’s target of about 2% to achieve sustainable and stable growth, with inflation proving difficult to curb.
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