May 15, 2024 - Economy

Inflation cooled in April as price gains slowed, CPI report says

Courtenay Brown

Man in a grocery store looking at the meat section — A customer shops at a supermarket in Millbrae, Calif. Photo: Li Jianguo/Xinhua via Getty Images

The Consumer Price Index (CPI) rose 0.3% in April and the core measure that strips out food and energy increased by the same amount, the Labor Department said on Wednesday.

Why it matters: Inflation slowed for the first time this year, helping ease concerns that progress on moderating consumer prices had stalled out.

The report on Wednesday showed the overall consumer price index increased 3.4% over the last 12 months, compared to 3.5% in March.
Meanwhile, the core measure rose 3.6% in the year through April, versus the 3.8% the prior month.

Zoom in: The slight cooldown in price increases come after a stretch of data showing inflation had stopped slowing after big declines last year.

Then, signs that inflation was normalizing helped lift moods among American consumers that had been soured by big price increases for a slew of goods and services since mid-2021.

The intrigue: Federal Reserve officials had signaled intentions to lower interest rates they raised sharply in the wake of the inflation shock.

But since inflation stopped cooling, they have backed off those plans and admitted a "lack of progress" on slowing inflation.

State of play: While inflation looks like it will be more difficult to beat than previously thought, the economy has not wavered much.

But separate data on Wednesday showed retail sales were flat in April, while data in March was revised a tick lower to 0.6%, the Commerce Department said.

Editor's note: This is a developing story. Check back for updates.

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Inflation cooled in April as price gains slowed, CPI report says

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