US inflation rate cooling down after higher-than expected price hikes

The US Dept. of Labor said Wednesday the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis, after rising 0.4 percent in March.

Over the last 12 months, the all items index increased 3.4 percent before seasonal adjustment, according to a report by the Bureau of Labor Statistics.

The index for shelter rose in April, as did the index for gasoline. Combined, these two indexes contributed over seventy percent of the monthly increase in the index for all items.

The energy index rose 1.1 percent over the month. The food index was unchanged in April. The food at home index declined 0.2 percent, while the food away from home index rose 0.3 percent over the month.

The index for all items less food and energy rose 0.3 percent in April, after rising 0.4 percent in each of the 3 preceding months. Indexes which increased in April include shelter, motor vehicle insurance, medical care, apparel, and personal care. The indexes for used cars and trucks, house
hold furnishings and operations, and new vehicles were among those that decreased over the month, the report noted.

The all items index rose 3.4 percent for the 12 months ending April, a smaller increase than the 3.5-percent increase for the 12 months ending March. The all items less food and energy index rose 3.6 percent over the last 12 months. The energy index increased 2.6 percent for the 12 months ending April.

The food index increased 2.2 percent over the last year.

Shelter costs, which have been a particular trouble spot for Federal Reserve officials expecting inflation to come down this year, increased 0.4 percent for the month and were up 5.5 percent from a year ago.

Dow Jones estimate for April: 0.4 percent.

Commenting on the figures, President Joe Biden said Inflation has fallen more than 60 percent from its peak, and core inflation fell to its lowest level in three years.” “Prices are still too high – so my agenda will give families breathing room by building two million new homes to lower ho
using costs, taking on Big Pharma to lower prescription drug prices, and calling on grocery chains making record profits to lower grocery prices for consumers,” he added.

Source: Kuwait News Agency