Core CPI remained at 2.8% in April.
The Consumer Price Index (CPI) fell to 2.3% in April, the lowest it has been in four years, since February 2021, according to the U.S. Bureau of Labor Statistics.
It is the third straight month that the index has declined. The 2.3% 12-month inflation rate dropped from 2.4% in March. It was slightly better than the 2.4% rate that economists projected.
For the month, inflation rose 0.2%, up from a 0.1% decline in March. Core inflation, which excludes more volatile food and energy prices, rose 2.8% in April, the same as March and in line with estimates.
Grocery prices fall
Food prices fell 0.1% in April, led by a 0.4% drop in food at home, or grocery, costs.
The decline in food at home prices was the largest since September 2020. Five of the six food items saw prices fall in April, led by eggs, which dropped 12.7%.
Overall, the index for meats, poultry, fish, and eggs fell 1.6%, while the fruits and vegetables index decreased 0.4%. Cereals and bakery products dropped 0.5% while dairy and related products fell 0.2%. The nonalcoholic beverages index increased 0.7% in April.
Over the past 12 months, food at home prices rose 2.0%. The meats, poultry, fish, and eggs index rose 7% over the last 12 months with egg prices up 49.3%. The index for nonalcoholic beverages increased 3.2% while dairy and related products jumped 1.6% over the 12 months ending in April. The cereals and bakery products index was unchanged over the year, while fruits and vegetables decreased 0.9%.
The food away from home index, which includes restaurants, rose 0.4 percent in April, led by a 0.6% increase in full-service meals. Prices for limited-service meals rose 0.3% in April. Over the past 12 months, food away from home prices have risen 3.9%, with full-service meals up 4.3% and limited-service meals up 3.4%.
Energy prices rise
Energy prices jumped 0.7% in April after falling 2.4% in March. Energy commodities dropped 0.2% led by fuel oil, which fell 1.3%. Gasoline prices declined 0.1% in April. Energy services prices gained 1.5%, led by utility gas service, which spiked 3.7% in April. Electricity prices rose 0.8%.
Over the past 12 months, energy prices have decreased 3.7% with gasoline prices down 11.8% and fuel oil prices 9.6% lower. The index for electricity has increased 3.6% over the last 12 months while natural gas costs have soared 15.7%.
Shelter prices increase
The shelter index increased 0.3% in April, up from 0.2% in March. Rent costs increased 0.3% while the lodging away from home index fell 0.1%. Over the past 12 months, shelter costs have climbed 4%.
Among other items, the index for household furnishings and operations increased 1% in April after being unchanged in March.
The airline fares index fell 2.8% in April, after declining by 5.3% in March. Used cars and trucks fell 0.5%, while new vehicles were unchanged in April. Further, motor vehicle insurance rose 0.6% in April.
Also, the medical care index increased 0.5% over the month, while hospital services increased 0.6% and physicians’ services rose 0.3%. Further, the prescription drugs index rose 0.4% in April.
Indexes with notable increases over the last 12 months include medical care (+2.7%), motor vehicle insurance (+6.4%), education (+3.8%), and recreation (+1.6%).
Stocks were mixed at the opening bell, with the Dow down 216 points and the Nasdaq up about 100 points. The S&P 500 was flat, but the Russell 2000 index was soaring, up 3.4% or 69 points.
