After three months of unexpectedly high inflation, consumer price increases cooled slightly, rising just 0.3% from March to April, compared to 0.4% the previous month. Year over year, inflation fell slightly from 3.5% to 3.4%.
The cooling was led by lower food and auto prices. Additionally, the levels of underlying inflation—which excludes variable food and energy costs—dropped to its lowest level in three years.
The decline could let both Federal Reserve officials and President Joe Biden breathe a little easier, as it indicates the rate of price increase could be slowing. These readings could affect the president race, as conservative critics have tried to point the finger at Biden for the higher costs and use inflation to thwart his re-election bid.
The report “was a tiny step in the right direction,” said Danielle Hale, chief economist at Realtor.com. “The fight against inflation is not yet over, but the worsening trend observed in the first quarter of 2024 may have ended.”
