The Consumer Price Index increased 0.3% from March to April, and inflation was at 8.3% in April compared to April 2021, the Department of Labor announced in a Wednesday press release.
Even though these numbers are lower than the 1.3% month-to-month consumer price increase and 8.5% year-to-year inflation in March, they’re still concerning, Fox Business reported.
The outlet noted that these figures were slightly higher than the predicted 8.1% and 0.2% from economists at Refinitiv.
When broken down into specific categories, the CPI spells some bad news for Americans, which they were likely already aware of while shopping. In particular, food rose 0.9% on the index, and the “food at home” index rose 1%.
Although the energy index dipped 2.7% in April compared to the previous month, there is still a 30.3% rise over the past year. The report notes that the gasoline index increased by 43.6%, and the fuel oil index increased by 80.5%.
When food and energy are taken out of the picture, which is referred to as “all items less food and energy” in the report, the index rose 6.2% over the past year.
Related: As the Fed Jacks Up Interest Rates, Experts Warn ‘No End In Sight’ to Rising Prices
Economist Jason Furman warned that even though some of these numbers are encouraging, the core inflation figure is cause for concern.
“Yes, the 12-month change in inflation peaked. But core inflation at 7.0% annual rate in April was faster than the 6.5% annual rate in the previous twelve months. Not a lot of comfort in that number,” he tweeted.
Yes, the 12-month change in inflation peaked. But core inflation at 7.0% annual rate in April was faster than the 6.5% annual rate in the previous twelve months. Not a lot of comfort in that number.
— Jason Furman (@jasonfurman) May 11, 2022
Some of the major categories:
Food: +0.9%
Energy: -2.7% (gasoline fell, especially seasonally adjusted compared to its usual April increase)
New cars: +1.1%
Used cars: -0.4%Shelter: +0.5% (that is the shoe we always knew would keep dropping)
— Jason Furman (@jasonfurman) May 11, 2022
“This is the inflation story to worry about: core services inflation has increased for four straight months. We’re getting the much predicted/hoped for reprieve on goods price increases but services matter 5X in the computation of the CPI,” Furman added in a later tweet.
This is the inflation story to worry about: core services inflation has increased for four straight months. We're getting the much predicted/hoped for reprieve on goods price increases but services matter 5X in the computation of the CPI. pic.twitter.com/oPyYNbkusE
— Jason Furman (@jasonfurman) May 11, 2022
There are some barely encouraging signs from this report, but make no mistake: inflation is still at the highest it’s been in years, and Americans are not out of the woods yet.
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