It was the lowest annual increase in core inflation since early 2021.
Live Updates: Inflation Cooled Slightly, Offering Some Relief for Consumers and the Fed
New York Time - Gift Link
Consumer prices rose 3.4 percent.
A closely watched measure of inflation eased last month, an encouraging sign for the economy after three straight months of uncomfortably rapid price increases.
The Consumer Price Index climbed 3.4 percent in April, down from 3.5 percent in March, the Labor Department said Wednesday. The “core” index — which strips out volatile food and fuel prices in order to give a sense of the underlying trend — rose 3.6 percent last month, down from 3.8 percent a month earlier. It was the lowest annual increase in core inflation since early 2021.
The slowdown will likely come as welcome news to consumers, and as a relief to policymakers at the Federal Reserve, who have been concerned that they were losing ground in their fight against inflation. But economists cautioned that one month of encouraging data was far from enough to set those worries to rest.
“I would characterize it as a small step in the right direction,” said Stephen Stanley, chief U.S. economist at Santander.
Both overall and core prices rose 0.3 percent from the previous month, down from 0.4 percent in February and March.