Month-over-month inflation ticked up a seasonally adjusted 0.2% in April, reversing the 0.1% decline that had occurred in March, according to the Consumer Price Index report released Tuesday by the U.S. Bureau of Labor Statistics.
The annual all-items inflation rate for the 12-month period ending in April increased 2.3% following the 2.4% rise for the 12-month span that ended in March. The annual increase for April was the smallest 12-month rise since February of 2021.
Cooler-than-expected inflation means the full impact of U.S. tariffs announced on April 2 has not yet shown up in the economic data. Foreign products already in transit before new tariffs took effect are exempt and the brunt of the tariffs’ impact will come in the months ahead. U.S. stocks mostly rose Tuesday morning after the CPI report was released.
Viewed on a monthly basis, the index for shelter rose 0.3% in April, accounting for more than half of the all-items monthly increase. The energy index also increased over the month, rising 0.7% with increases in the natural gas index and the electricity index more than offsetting a decline in gasoline prices. The food index, in contrast, fell 0.1% in April.
The monthly so-called “core index,” which excludes more volatile food and energy costs, rose 0.2% in April. Monthly increases occurred in the indexes for household furnishings and operations, medical care, motor vehicle insurance, education, and personal care. The indexes for airline fares, used cars and trucks, communication, and apparel were among the major indexes that decreased in April.
Viewed on an annual basis, the core index excluding food and energy costs rose 2.8% for the 12-month period ending in April. The shelter index increased 4.0% over April 2024. Other indexes with notable increases for the 12-month period include medical care (+2.7%), motor vehicle insurance (+6.4%), education (+3.8%) and recreation (1.6%).
On the all-items index, the price of food is up 2% over the 12-month period that ended in April. The meats, poultry, fish, and eggs index rose 7.0% overall, and the price of eggs has increased 49.3% since April of 2024.
The energy index has decreased 3.7% over the past 12 months. The gasoline index fell 11.8% and the fuel oil index fell 9.6% of that 12-month span. By contrast, the index for electricity increased 3.6% over the last 12 months and the index for natural gas rose 15.7%.
