CPI report live updates: Inflation dips to 4.9%; core consumer price gains stay elevated

Inflation slowed for a tenth straight month in April as a continued moderation in grocery costs offset rising gasoline prices.

An underlying inflation measure that captures longer-lasting trends remained elevated.

Consumer prices increased 4.9% from a year earlier, down from 5% in March and a 40-year high of 9.1% last June, according to the Labor Department’s consumer price index. That's the smallest yearly increase since April 2021.

On a monthly basis, prices rose 0.4% following a 0.1% increase in March.

Fed hikes interest rate in May:Fed hikes interest rates 0.25 percentage point but signals pause in inflation fight

Inflation cools:Inflation slows to 5% in March, a nearly 2-year low, but core consumer price gains accelerate

What is the difference between core CPI and CPI?

Core prices, which exclude volatile food and energy items and capture longer-lasting trends, increased 0.4% from March following a similar rise the previous month. That lowered the annual increase from 5.6% to 5.5%.

Core Consumer Price Index

The core consumer price index is a measure of how consumer prices shift, not counting the costs of energy and food which are typically the most volatile components of the broader consumer price index. Economists expect the core consumer price index for April to show prices rose 0.3% over March, and 5.4%, year over year.   

When did the Fed start raising interest rates?

The Fed raised its key short term interest rate a quarter of a percentage point last week - its tenth rate hike in a row. But it signaled that it may pause further boosts as it waits to see if its string of rate increases, and the tighter lending standards imposed after the failure of Silicon Valley Bank, do their part to tame inflation. 

Silicon Valley Bank: The failure of the California institution rattled investors, consumers and regulators 

Fed inflation report

The Personal Consumption Expenditure price index, the Federal Reserve’s preferred measure of inflation, comes out on May 26. 

The next consumer price index report is scheduled to be released on June 13. 

What is a good inflation rate?

The Federal Reserve’s target is an inflation rate of 2%. It has said that the 2% goal "is most consistent with the Federal Reserve’s mandate for maximum employment and price stability."

Dow futures

Stock futures reversed direction and rose in pre-market trading Wednesday morning after the 8:30 inflation report showed inflation rose less than expected in April. Dow futures increased 0.18%; S&P 500 futures rose 0.33% and Nasdaq futures climbed 0.40%

Inflation rate

In March, the inflation rate was 5% on an annual basis. The pace of price increases slowed for the ninth month in a row as prices at the pump and the grocery store declined.

What is the difference between core consumer price and overall consumer price index?

While the Consumer Price Index measures how average prices shift over time for various goods and services, the core consumer price leaves out the costs of energy and food which are particularly volatile. 

CPI meaning

The Consumer Price Index (CPI) is a snapshot of how prices shift on average over time for a variety of products and services.

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