April 2024 Consumer Price Index: Inflation Slows as Food Prices Stabilize

Key Highlights:

• The Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.3% in April, a slight decrease from March's 0.4%.
• Over the past year, the CPI-U increased by 3.4% before seasonal adjustment.

Shelter and Energy Drive Inflation

In April, shelter costs continued to rise, significantly influencing the overall increase in the CPI-U. The shelter index saw a notable uptick, mirroring similar trends from previous months. Meanwhile, the energy index climbed by 1.1%, driven mainly by a 2.8% rise in gasoline prices. Together, these two categories accounted for more than 70% of the monthly increase.

Food Prices Hold Steady

The food index remained unchanged in April, marking a period of stabilization. Notably, the food at home index dropped by 0.2%, offset by a 0.3% increase in the food away from home index. Within groceries, prices for meats, poultry, fish, and eggs fell by 0.7%, largely due to a significant 7.3% drop in egg prices. Conversely, the index for cereals and bakery products increased by 0.6%.

Core Inflation Trends

Excluding food and energy, the CPI-U also rose by 0.3% in April, consistent with the previous month's performance. Categories contributing to this rise included motor vehicle insurance (up 1.8%), apparel (up 1.2%), and medical care (up 0.4%). However, used cars and trucks experienced a 1.4% decline, continuing a trend from March.

Yearly Overview

On an annual basis, the CPI-U rose by 3.4% for the 12 months ending in April, slightly down from the 3.5% increase observed in March. The energy index saw a 2.6% rise over the year, with electricity prices increasing by 5.1%. In contrast, natural gas prices fell by 1.9%. The food index experienced a 2.2% annual increase, with the food away from home index up by 4.1%.

Looking Ahead

The Bureau of Labor Statistics will release the next CPI data on June 12, 2024. Analysts and consumers alike will be closely monitoring these figures, especially as the economy navigates through inflationary pressures and market adjustments.

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