Inflation rates in the United States saw a slowdown in April, providing some relief to Americans grappling with high prices. The Consumer Price Index report released by the Bureau of Labor Statistics on Wednesday revealed that consumer prices were up 3.4% for the 12 months ending in April, a slight decrease from the 3.5% increase observed the previous month.
On a monthly basis, prices rose by 0.3%, marking a slower pace of growth compared to the 0.4% increase seen in the two preceding months. These figures were in line with economists' expectations of a 0.4% monthly increase and an annual gain of 3.4%.
The report also highlighted that rising gasoline and shelter costs accounted for over 70% of the monthly increase in overall inflation. However, grocery prices fell for the first time in a year, dropping 0.2% from March. The core CPI, which excludes the volatile categories of energy and food, slowed from 3.8% to 3.6%, its lowest rate since April 2021.
"This is the first print in a month that wasn't hotter than expected, so there's a relief rally," said Dan North, senior economist at Allianz Trade North America, according to CNBC. "The excitement is a little overdone. This is not Caitlin Clark. She's exciting; this is not exciting."