US inflation eases in April but annual CPI accelerates to 3.8pc

(Sharecast News) - US consumer prices rose 0.6% in April on a seasonally adjusted basis, easing from the 0.9% increase recorded in March, according to the Bureau of Labor Statistics.

Energy remained a key driver of the monthly rise, with the index climbing 3.8% and accounting for more than 40% of the overall increase. Shelter costs also continued to push higher, rising 0.6% on the month. Food prices advanced 0.5%, with food at home up 0.7% and food away from home up 0.2%.

Core CPI, which strips out volatile food and energy prices, increased 0.4% in April. Categories posting gains included household furnishings and operations, airline fares, personal care, apparel and education. Declines were seen in new vehicles, communication and medical care.

On an annual basis, headline CPI rose 3.8% in the 12 months to April, accelerating from 3.3% in March, while core CPI increased 2.8% year‑on‑year, compared with 2.6% in the prior month. The energy index was up 17.9% over the year, while food prices rose 3.2%.

Reporting by Iain Gilbert at Sharecast.com