Key Points

Consumer Price Index Shows Slowest Inflation in Years

Key Points

• Consumer Price Index (CPI) rose 0.3% in April.
• Annual core CPI gain was 3.6%, the smallest in three years.
• Consumer inflation rose 3.4% from a year earlier.
• Energy prices fell 2.7% in April, driven by a decrease in gasoline costs.

Details

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April on a seasonally adjusted basis, the Labor Department reported today. The index for rent rose 0.4% over the month, as did the index for owners equivalent rent. The CPI is a measure of the average change over time in the prices paid by urban consumers for a basket of goods and services. The annual core CPI gain, which excludes volatile food and energy prices, was 3.6%, the smallest in three years.

Consumer inflation rose 3.4% in April from a year earlier, according to the report. This is down from a 4.2% increase in March. The index for energy prices fell 2.7% in April, driven by a 6.1% decrease in the cost of gasoline. The index for food prices rose 0.5% over the month.

The latest CPI report suggests that inflation is starting to cool down. This is good news for consumers, as it means that their purchasing power is not eroding as quickly. However, it is important to note that the CPI is still above the Federal Reserve's target of 2%. The Fed has indicated that it will continue to raise interest rates in an effort to bring inflation down to its target.