Inflation rose 4.9% in April from one year ago – with increases in gas and and used vehicles keeping rate high
- The annual inflation rate grew 4.9% since last year
- Between March and April, it grew 0.4% according to the Labor Department
Inflation grew by 0.4 percent between March and April – four times the 0.1 percent increase seen between February and March.
The latest statistics released by the US Labor Department on Wednesday showed that annual inflation has risen by 4.9 percent since April 2022, less than what market experts expected.
It is the first time the US has seen a rise of less than five percent in two years, with the annual increase hitting its apparent peak of 9.1 percent in June 2022.
While the rise in cost of living appears to be cooling, it still sits far above the desired two percent annual inflation target set by the Fed.
And many Americans continue to struggle with price of everyday items that now sit stubbornly higher than they did before the COVID pandemic.
US Labor Department statistics show that inflation rose 4.9 percent over last year
Clearance sale signs are displayed at a retail store in Downers Grove, Illinois, on Wednesday, April 26, 2023.
The Consumer Price Index, released on Wednesday, shows that there were increases in the prices of homes, gasoline and used vehicles.
Shelter costs, which account for about one-third of the CPI weighting, increased 0.4 percent from March, and are now up 8.1 percent from one year ago.
The cost of used cars and trucks, meanwhile, increased a whopping 4.4 percent from the month prior.
The cost of filling up a car also increased in April, with motor fuel cost up 2.6 percent from March 2023.
It also became costlier in April to bring a pet to the veterinarian, with services up 3.2 percent.
And the prices of toys were up 7.2 percent over the month, while fees for lessors instructions were up 5 percent.
But those increases were offset somewhat by decreases in new vehicles and food cooked at home.
According to the latest data, the cost of milk fell 2 percent from March — the largest monthly drop in milk prices since February 2015.
Egg prices also fell 1.5 percent, but was still up 21.4 percent over the year.
Interestingly, health insurance costs also fell 3.8 percent over the month, while the cost of public transportation was down 5 percent.
