WASHINGTON--The Consumer Price Index rose 0.2% in April on a seasonally adjusted basis, following a 0.1% decline in March, according to the U.S. Bureau of Labor Statistics.
The report shows that over the past 12 months, the all items index has climbed 2.3%.
“Headline and core inflation rose less than expected in April, with headline inflation declining to 2.3% year-over-year while core inflation remained steady at 2.8% compared to the previous month," explained Dawit America's Credit Unions senior economist. "The most notable increases in core prices came from services such as housing, medical care, insurance, and education indicating impact from goods tariff is not significant yet."
"While the recent deal with China resulted in big reduction of tariffs, they remain sufficiently high to add pressure on prices and the economy," Kebede said. "This will likely make the Federal Reserve wait to see more incoming data before taking action to cut rates.”