In April, inflation over the previous 12 months recorded the smallest increase of any month in more than four years, U.S. Bureau of Labor Statistics (BLS) data released Tuesday show.
Compared to March, the seasonally-adjusted Consumer Price Index (CPI) rose 0.2%, less than the 0.3% rise analysts expected. The annual inflation CPI rate was 2.3% - the smallest 12-month rise since February of 2021.
“Core” inflation, which excludes the volatile food and energy components, rose 0.2% from March and 2.8% over the past 12 months. The cost of energy increased 0.7% from the previous month, while the price of food fell 0.1%. The energy index decreased 3.7% percent for the 12 months ending April. The food index increased 2.8% over the last year.
The index for shelter rose 0.3% in April, accounting for more than half of the all-items monthly increase. Over the previous 12 months, the cost of shelter increased 4.0%.
In contrast, the price of gasoline dipped 0.1% for the month and 11.8% over the previous 12 months. Likewise, the fuel oil index declined 1.3% month-to-month and 9.6% on an annual basis.
The positive inflation report belies the doomsday predictions that President Donald Trump’s reciprocal tariffs on countries that charge the U.S. onerous rates would immediately cause inflation to spike. As Fox Business reports:
“Economists noted that the price impact of most tariffs doesn't appear to have translated into the inflation data yet through the April reporting period.
"‘There isn't a lot of evidence of tariffs boosting the CPI in April, but this shouldn't be surprising as it takes time,’ said Ryan Sweet, chief U.S. economist at Oxford Economics.”
The business and economic reporting of CNSNews is funded in part with a gift made in memory of Dr. Keith C. Wold.
