A highly anticipated report released by the Labor Department on Wednesday indicated that consumer prices in the U.S. increased slightly less than expected in April.
The Labor Department noted that its Consumer Price Index (CPI) rose by 0.3 percent in April, following a 0.4 percent increase in March. Economists had projected a 0.4 percent rise for April.
The report also stated that the annual rate of consumer price growth slowed to 3.4 percent in April from 3.5 percent in March, aligning with expectations.
The monthly increase in consumer prices was partly due to a significant surge in gasoline prices, which climbed by 2.8 percent in April after a 1.7 percent rise in March.
Excluding food and energy prices, core consumer prices still saw a 0.3 percent rise in April, consistent with the 0.4 percent increase in March. The rise in core prices matched economist forecasts.
The annual rate of core consumer price growth decelerated to 3.6 percent in April from 3.8 percent in March, again meeting expectations.
A continued increase in shelter prices contributed substantially to the monthly advance in core prices, with shelter prices climbing by 0.4 percent for the third consecutive month.
Additional price increases were observed in motor vehicle insurance, medical care, apparel, and personal care. Conversely, prices for used cars and trucks, household furnishings and operations, and new vehicles saw decreases.
Quincy Krosby, Chief Global Strategist for LPL Financial, remarked, "The CPI print offered a modicum of hope that inflation is cooling, albeit slowly." She further added, "The Fed will certainly need a series of cooler reports for adjusting its rate easing timetable, but the CPI report suggests that the path towards 2% is a bit less bumpy."
On Tuesday, a separate report from the Labor Department showed that producer prices in the U.S. increased more than expected in April.
The Labor Department reported that its Producer Price Index (PPI) for final demand rose by 0.5 percent in April, following a revised 0.1 percent decrease in March. Economists had anticipated a 0.3 percent rise compared to the originally reported 0.2 percent uptick for the previous month.
The report additionally highlighted that the annual rate of producer price growth accelerated to 2.2 percent in April from a downwardly revised 1.8 percent in March. This was consistent with economist expectations for the year-over-year growth to inch up to 2.2 percent from the initially reported 2.1 percent for the previous month.
