Inflation Cooled Slightly in April

The Consumer Price Index, which the U.S. Department of Labor uses to measure inflation, rose 4.9% in April compared with a year ago, which is down 0.1% from March’s 5% increase. It was the 10th straight month of declines in inflation. However consumer prices are still at levels considered historically high, according to the The Wall Street Journal.

According to a statement from the Bureau of Labor statistics, the index for shelter contributed the most to the monthly “all items” increase, followed by increases for used cars and trucks, and gasoline. The cost of food was unchanged in April, as it was in March. The index for food at home fell 0.2% in the month, while the index for food away from home rose 0.4%.

The Federal Reserve last week approved an increase to its benchmark federal-funds rate to a range of 5 to 5.25% in an effort to further cool inflation. The rate is at its highest level in 16 years, though officials have alluded this may the last increase for some time.

Though rates may not increase, a source quoted in The Wall Street Journal said it’s likely interest rates will continue to be elevated. “Rates will need to remain high for a little longer than we have assumed,” said Andrew Hunter, an economist at Capital Economics.