Consumer prices in April showed inflation pressures remain elevated in the US economy while headline prices rose at the slowest annual rate since the period ending April 2021. According to the latest data from the Bureau of Labor Statistics released Wednesday morning, the Consumer Price Index (CPI) revealed headline inflation rose 0.4% over last month and 4.9% over the prior year in April. Prices in March rose 0.1% monthly and 5% from the prior year.
Economists had expected prices in April to rise 0.4% month-over-month and 5% over last year, according to data from Bloomberg. The 4.9% annual increase, although cooler than March's gain, is still significantly above the Federal Reserve's 2% target. On a "core" basis, which strips out the more volatile costs of food and gas, prices in March climbed 0.4% over the prior month and 5.5% over last year. Both measures were in line with economist expectations, according to Bloomberg data.
Core inflation remained especially sticky last month as rent prices continued to surge. The index for rent and the index for owners' equivalent rent rose 0.6% and 0.5%, respectively, in April. Owners' equivalent rent is the hypothetical rent a homeowner would pay.
Source: Yahoo! Finance