April CPI: Inflation ticked slightly higher last month

The inflation increased slightly in April and remained higher than the target rate of the federal reserve, as the economic impact on the high definitions of consumer prices will be expected to affect the prices of consumers in the coming months.

The Consumer Prices Index (CPI) – a wide measure of the amount of daily commodities such as gasoline, groceries and rental costs – rose 0.2 % in April compared to last month, while increased by 2.3 % on an annual basis. The annual inflation rate has been the lowest since February 2021.

Each of these numbers was slightly cooler than the estimates of the Economists included in LSEG, who expected a monthly number of 0.3 % and an annual enlargement of 2.4 %. Monthly inflation comes after an unexpected decrease in March, when it decreased by 0.1 %. The main inflation did not change in April.

The so -called basic prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, increased by 0.2 % than the previous month, slightly cooler than expected, and 2.8 % on an annual basis, in line with economists’ expectations. The main number did not change, while the monthly number increased by an increase of 0.1 % a month ago.

The Federal Reserve holds a fixed major interest rate amid economic uncertainty

The report showed that inflationary pressures in the American economy are still fixed despite the progress of inflation from the Federal Reserve goal by 2 % in recent years.

Creating high inflation is severe financial pressure for most American families, which are forced to pay more for daily necessities such as food and rent. It is especially difficult for low -income Americans, because they tend to spend more salary that has already been placed on necessities and have less flexibility to save money.

With economic turmoil, serious concern appeared: stagnation

Food prices fell 0.1 % in April of the previous month and were 2.8 % higher on an annual basis. The dining index at home decreased by 0.4 % for this month and 2 % from last year, while food increased from home by 0.4 % and 3.9 % from last year.

Egg prices decreased by 12.7 % in April, as the cooling trend continued after the industry witnessed rapid growth in prices last year due to the outbreak of bird flu. The meat, poultry and fish index did not change in April, while the dairy index decreased by 0.2 %, the grain index and bakery products decreased by 0.5 % for this month, and the fruit and vegetable index decreased by 0.4 % for April.

Energy prices increased by 0.7 % in April. Over the past 12 months, the power index has decreased by 3.7 %, driven by declines in gasoline prices (-11.8 %) despite the increases in electricity prices (+3.6 %) and natural gas (+15.7 %).

The housing prices increased by 0.3 % on a monthly basis, representing more than half of the monthly increase of the index of all elements. During the past year, the shelter index increased by 4 %.

The transportation costs increased by 0.1 % in April and higher by 2.5 % than last year. Aviation prices decreased by 2.8 % for this month and 7.9 % decreased from last year, while car insurance prices increased by 0.6 % on a monthly basis and 6.4 % compared to last year.

The prices of used cars jump to the highest level since 2023, where the automatic definitions of consumers are pressed

The cooler inflation report is expected for April after the Federal Reserve stopped last week from reducing interest rates for the third meeting in a row, as it awaits the signs of inflation that runs out to its 2 % goal, as well as an increase in prices due to President Donald Trump’s tariff.

Federal Reserve Chairman Jerome Powell indicated at a press conference last week that the impact of customs tariff policies is “very certain”, but if the large tariffs remain in place, it is likely to generate an increase in inflation, slow economic growth and an increase in unemployment.

Federal Reserve Chairman Jerome Powell said the central bank will wait to reduce interest rates so that there is more clarity on inflation data. (Reuters/Amanda Andradi Rhodes/Photo/Reuters photos)

Economists have indicated that the effect of the price of most definitions does not seem to have been translated into inflation data so far during the reporting period in April.

“There is not much evidence to enhance the definitions that enhance the consumer price index in April, but this should not be surprising because it takes some time.” “The areas that were likely to be strengthened by the customs tariff in April in furniture/bedding, devices, and to a lesser -to -extent.” The prices of the new vehicles did not change between March and April, while the prices used decreased. We know from the used selling prices that this decrease will not stick. “

Get Fox Business on the Go by clicking here

“The negative surprise in the consumer price index does not mean that the customs tariff does not affect the economy, this means only that they do not appear in the data yet. Wait and see the game name, and even the changes, the federal reserve will remain on the margin,” said Ellen Zintner, the chief economist of Murghan Stanley, to manage the wealth.