April US CPI Report Softer Than Expected at a 2.3% Annual Rate

The Bureau of Labor Statistics reported that the Consumer Price Index increased 2.3% in April from year-ago levels, compared with 2.4% in March. Year-over-year core CPI (which excludes volatile food and energy costs) rose 2.8%, matching the March rate.

The CPI rose 0.2% month over month in April after falling 0.1% in March. Core CPI also rose 0.2%, matching the March increase.

Economists forecast the CPI to rise 0.3% on a monthly basis in April, taking the annual inflation rate to 2.4%, according to FactSet’s consensus estimates. Economists expected that core inflation rose 0.3% on a monthly basis and 2.8% on an annual basis.

April CPI Report Key Stats

• CPI rose 0.2% for the month after falling 0.1% in March.
• Core CPI also rose 0.2% after falling 0.1% in March.
• CPI increased 2.3% year over year after increasing 2.4% the prior month.
• Core CPI rose 2.8% from year-ago levels after remaining unchanged in March.

Food prices decreased 0.1% in April after increasing 0.4% in March. Grocery prices fell 0.4%, while restaurant prices increased 0.4%.

Energy prices were mixed after holding steady last month. Utility gas prices rose 3.7%, fuel oil prices decreased 1.3%, gasoline prices fell 0.1%, and electricity prices increased 0.8%.

Shelter prices rose 0.3% in April after rising 0.2% in March.